RFS waiver may not provide relief to livestock industry, experts warn

In Washington, consensus is beginning to emerge that a waiver of the Renewable Fuel Standard will do little to reduce corn prices or ethanol demand. A report from the McClatchy Washington Bureau quoted analysts saying that the spread between ethanol and gasoline prices, and the octane spread that allows lower-cost, lower octane gasoline to be blended with ethanol, and the requirements to oxygenate fuels, would continue to push demand even if the RFS were particularly or fully waived. Meanwhile, a National Public Radio report reported Minnesota livestock farmers were paying 20 cents per bushel less for corn following the shutdown of ethanol capacity, but said that the difference was offset by higher shipping costs for animal feed, when distillers grains were removed from the market.