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The American Fuel & Petrochemical Manufacturers explains that EPA is preparing to reset the Renewable Fuel Standard volumes for 2020 to 2022. It argues that the mandates have repeatedly fallen short and have effectively become a corn ethanol mandate.
A lower reset would reduce required biofuel volumes, which would weigh on demand for corn ethanol feedstock and soybean oil used in biodiesel. The size of the reset will determine the price impact.
afpm.orgAFPM CommunicationsMay 7, 2019After 310 past bearish policy events, Corn moved a median +0.3% over 5 sessions (54% higher; middle half -1.4% to +1.9%), and +0.6% over 20.
After 351 past bearish policy events, Soybean Oil moved a median -0.0% over 5 sessions (49% higher; middle half -1.7% 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.
