You're watching...
Renewable Fuels Association vice president Geoff Cooper on the cost of corn and the call to waive the renewable fuel standard.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Lower while spicing up filling up.
Your -- tank the food vs fuel debate is heating up during this historic drought.
More corn goes to making ethanol about 40% US supplied and feed for livestock -- -- industry groups.
What that all changed a lot of news breaking in this arena today Jeff Flock is joining us now from winning -- Marty tells stuff.
At an ethanol plant Cheryl on this what it looks like here in -- Illinois but Natalia.
This ethanol producers not too happy with the livestock producers or at least they trade organizations today.
And they say hey listen you guys are off the market wanna take you inside.
Where they are just they are making distillers grain -- -- Cooper walked over here with me if you would.
What I'm seeing right here -- this is actually livestock food that is coming from the ethanol plant.
That's absolutely right when you put a bushel of corn into an ethanol plant about a third of that bushel comes back.
As this product that you're looking at this is called dried distillers grains I just gotta I gotta speak on behalf of the livestock association today which said hey.
You need.
To relax the -- mandate the -- renewable fuel standard mandate because you're competing with them for this precious -- eight dollar court right now but what the board up.
It's -- 120 -- today another huge rally.
Is it not -- helping drive the price up as well certain.
We anytime -- put demand on on a commodity it's going to have an impact on the price.
But what's important to remember is is waiving the RFS isn't going to have the type of impact on corn prices they're expected which would reduce.
You know there's a study out of Iowa State just last week that -- about a four and a half percent reduction.
So that's certainly not -- you know maybe -- 2530 cent reduction that's not the type release that are they're seeking if we put that the chart up though as we watch justice being loaded.
Natalia court has just had an incredible run how are you dealing as an ethanol producer with eight dollar court.
Well first of all you've seen the industry really ratchet back on production.
The industry is as scaled back by about 20% -- -- and -- -- right now we're making less capital.
But the other thing to remember is this this -- product is very important producers' bottom line.
-- -- for cattle right back here behind us out of an ethanol plant.
Two sides to every.
Or there is certainly but I had to say it's -- -- be -- to hear what those -- your producers in particular have to say about this this mandate great story great stuff Jeff Flock thank you very much.
You're going against the grain there OK but --
