This Week's Highlights
- Two commodity industry groups are battling right now to protect their business models. It’s the corn growers of the Midwest against the oil refiners of the South.
- A change in the country’s ethanol mandate could meaningfully market impact the agriculture and refining industries. Below are the companies and sectors we’re watching:
- Ethanol Producers: Archer Daniels Midland (ADM), Valero Energy (VLO), and Green Plains Renewable Energy (GPRE) are among the top 5 ethanol producers in the U.S. Increased ethanol demand may benefit the largest producers and increase ethanol production margins, which have been weak due to industry overproduction.
- Oil Refiners: In our view, refining companies benefit from RIN reform. Companies such as Marathon Petroleum (MPC), Phillips 66 (PSX), HollyFrontier (HFC), and CVR Refining (CVRR) may see their margins expand as the price of RINs decrease or waivers are granted.
Read More from this week's Policy Insights: Corn States vs Oil States.
For more policy insights and market impacts...