Corn Gains on Speculation U.S. Ethanol Output Won’t Decline
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Corn rebounded after falling to a three-week low on speculation that ethanol producers won’t reduce purchases of the grain after the U.S. Senate voted to repeal industry tax incentives.
The U.S. Senate yesterday voted to eliminate the 45-cent tax credit for refiners on each gallon of ethanol mixed with gasoline and ended a 54-cent tariff on Brazilian imports. Under an energy law known as the Renewable Fuels Standards, petroleum refiners are still required to use 15 billion gallons of ethanol by 2015.