Tuesday, June 8, 2010

ADM (NYSE:ADM) Pressing for 12 Percent Ethanol Mandate

Archer Daniels Midland (NYSE:ADM) is pressuring the Environmental Protection Agency to approve an increase in the blend of ethanol and gasoline to 12 percent, as they attempt to take advantage of the forced increase to generate revenue and profits for the company.

Supposedly the introduction of a 12 percent ethanol blend would help make the alternative fuel more available, although there really isn't a big demand for it, and probably wouldn't exist if it wasn't for government subsidies, which need to be dropped.

The ethanol ADM makes is from corn, which is extremely hard on the environment and opposed by people and groups of all persuasions.

This is an attempt by Archer Daniels Midland to use the current oil spill to push the use of alternative fuels, more for the purpose of generate strong earnings because of the fall of corn prices than anything else.

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