Blend Wall Closing In; Future of Ethanol Hinges on E15

Four months of stagnant gasoline demand combined with record ethanol production could mean that the corn-based fuel is close to hitting the blend wall. A sharp drop in ethanol prices has cut returns for ethanol producers dramatically, which meant the industry’s future may rely on the EPA’s decision to increase the blend level from 10 to 15. “Given the fact that gasoline consumption in this country simply is not growing very rapidly and has essentially been flat for some time now, we are getting to the point where we simply have absorbed as much ethanol as we can under the current E10 legislation,” said Gerry Bange, USDA Outlook Board. (Domestic Fuel) Read more.