Officials from leading US corn and grain organizations have expressed their support for the Environmental Protection Agency's proposed Renewable Fuel Standards (RFS) for 2026 and 2027, released on June 13.
The EPA's proposal mandates that refiners blend 15 billion gallons of conventional biofuels into the fuel supply.
"This action provides a significant certainty to corn farmers across the country who rely on a stable biofuels industry," said Kenneth Hartman Jr., president at the National Corn Growers Association, in a statement on June 13.
According to the last WASDE released by the US Department of Agriculture, almost 40% of the produced corn goes to ethanol and by-products, with around 5.5 billion bushels annually.
Hartman said that the announcement comes on the heels of US President Donald Trump signing into law three Congressional Review Act resolutions reversing California's vehicle emission waivers, a win for farmers and the liquid fuel industry.
The rule set a record high for the proposed renewable fuels blending level at 24.02 billion gallons for 2026, which includes 15 billion gallons of conventional corn-based ethanol and 9.02 billion gallons for advanced biofuels. The 9.02 billion gallons include 5.61 billion gallons of biomass-based diesel and 1.3 billion gallons of cellulosic biofuels.
"Iowa's corn farmers are pleased with the release of the EPA's proposed RVOs as it is a positive step for not only ensuring corn –based ethanol demand is maintained, but it is also a win for America as it decreases dependence on foreign fuels," said Iowa Corn Growers Association president, Stu Swanson.
The rule will go through a period of public comment and review prior to being finalized. If finalized, the rule will decrease US reliance on foreign sources of oil by roughly 150,000 barrels of oil per day, throughout 2026 and 2027, said the ICGA.
Nevertheless, "the EPA's proposal presents an added challenge for punctual understanding," said a trader source of Chicago, explaining that "the mandate is not formulated in gallons, it is formulated based on RINs, and that represents a conversion that is neither linear nor proportional."
US corn prices closed the week on the rise, pushed by the Chicago Board of Trade and the South American corn expected to begin entering the market sooner.
The Platts assessment for US yellow corn saw outright prices for CIF NOLA for June shipment at $201.40/mt on June 13, an increase of $4.35 from June 9. And for July shipments, the Platts assessment for the outright price closed at $201.40/mt on June 13, up 2.2% from the beginning of the week's assessment.
Meanwhile, the FOB market closed at $201.38/mt on June 13, representing an increase of $1.57 compared to June 9.