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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 379.91+0.4%4:00 PM EST

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To: elmatador who wrote (85126)12/28/2011 3:54:31 AM
From: Snowshoe  Read Replies (1) of 217677
 
Elmat,

Just as I told you, the US ethanol tariff could only be cut if and when the ethanol subsidy was also cut. They both expire next week on 1/1/2012!

Now we'll see what the effect is on US ethanol and gasoline prices, and whether Brazil becomes a net exporter of ethanol to the US. Given the current Brazilian imports of US ethanol and the high global price of sugar, I doubt we'll see a rush of ethanol imports from Brazil.

Also keep your eyes on the US Congress for a fight about rolling back the planned increase in the ethanol blending mandate...

Congress ends ethanol tax subsidy, tariff
detroitnews.com

Washington —The United States has ended a 30-year tax subsidy for corn-based ethanol that cost taxpayers $6 billion annually, and ended a tariff on imported Brazilian ethanol.

Congress adjourned for the year on Friday, failing to extend the tax break that's drawn a wide variety of critics on Capitol Hill, including Sens. Tom Coburn, R-Okla., and Dianne Feinstein, D-Calif. Critics also have included environmentalists, frozen food producers, ranchers and others.

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Ethanol supporters are worried Congress might roll back a 2007 mandate that dramatically boosts the use of ethanol annually through 2022. The mandate jumps from 15 billion gallons of renewable fuels — including cellulosic ethanol in 2015 — to 36 billion gallons by 2022.
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