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But Brazilian ethanol will probably be cheaper in ports along the Gulf and east coast. So corn based ethanol probably won't get shipped as far.

Then comes the secondary effect on corn prices. The market should seek out a new equilibrium point.

Ethanol use requirements in gasoline are complex. Some states have their own requirement. Some fed regulations require unspecified oxygenates. Ethanol was chosen by oil companies when Congress refused to protect them from MTBE lawsuits--MTBE being the other oxygenate available for blending.

And there are some ethanol mandates which are being adjusted due to nonavailability of cellulosic ethanol.
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