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The RFA disputes a May Congressional Research Service report on COVID-19's effect on RFS compliance. It argues the RFS adjusts obligations proportionally as fuel use falls and that a large surplus of RINs can cover 2020 obligations.
If the RIN surplus lets obligated parties meet 2020 requirements without blending, biofuel plant output may hold up less than the pandemic would otherwise imply, which affects corn and soybean oil demand.
ethanolrfa.orgRenewable Fuels AssociationMay 4, 2020After 1,419 past policy events, Soybean Oil moved a median +0.1% over 5 sessions (52% higher; middle half -1.6% to +2.1%), and -0.5% over 20.
After 1,905 past policy events, Soybeans moved a median +0.1% over 5 sessions (52% higher; middle half -1.4% to +1.8%), and +0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
