Ethanol court losses
Two court losses for the ethanol industry could affect Iowa’s infrastructure. Last month the Supreme Court ruled that extensions on renewable fuel waivers for oil refiners were viable and a DC federal appeals court this month ruled summertime E15 gas sales are not viable.
“It does not go into effect right away, there are things we can do to try and reverse it and we are going to explore every single legislative, regulatory, or legal challenge we can to get this back to where it makes common sense,” Monte Shaw with the Iowa Renewable Fuels association says. One of the big issues the court found was the definition of 10% ethanol which is allowed to be sold during the summer. The court says 15% ethanol is not 10%, with renewable fuels groups countering by saying it is “at least” 10 % ethanol.
The decision could hurt Iowa retailers who had been putting lots of gas pumps in place with easily accessible 15% ethanol pumps. Now those new pumps can only be used for nine months of the year. Nationwide there are nearly 25 hundred retailers selling the higher blend. There’s little room for a legislative fix if it is not reversed on appeal, according to Iowa Senator Chuck Grassley.
Shaw says that means the focus is to work to allow E15 sales for the summer of 2022. “These artificial barriers to higher ethanol blends have always been a real problem. There’s no scientific reason for them, no environmental reason for them, it’s just regulations and then different parties, whether it’s big oil, or others, manipulating those regulations in a way to prevent competition, if I want to put E-15 in my car I ought to be able to do it.”
A look at the markets
Starting off the week with some green. Analyst Jamey Koahke has the pre-report markets:
“Starting the week off on a great note finally, a little green here across the entire row crops, obviously seeing a nice correction to the downside, market oversold and a lot of other technicals oversold as well kind of seeing a bit of a bounce into the monthly WASDE report. But the key here this week is will we hold a rally here together, there still is more moisture moving in later in the week plus what we got last week. Hopefully that’s factored into the market. Need some good export sales as well as they’ve been pretty slugglish. But really just turnign back to complete weather as we get into this report. Over to the meat sector looking for steady cash this week looking for boxes to trend on lower seasonally. Kind of still in a bearish time period but 125-126 last week looking for that to hold together this week. Over to hogs, had some solid exports last week to China helping the market out, cut outs become a bit of a rally this week of well.”
The Colfax sheep and goat auction on Saturday saw a sale of 521 head of sheep. Feeder lambs fetched the day’s high average price of $2.96 per pound, while fed lambs averaged $2.72 per pound. There were 151 head of goats at the auction.. saw a high average price ranging from $155 to $485 per head