GPRE - Biden to send $700m Covid relief check to biofuel industry ahead of quota release

The Biden administration is set to announce biofuel blending quotas for 2021 and 2022 Friday, an announcement that will impact food (CORN) (SOYB) and fuel prices, as well as bio-fuel and refining margins (VLO) (MPC). Ahead of the announcement, Bloomberg has reported that the President will send $700m in "Covid relief" funds to the biofuel industry, to make up for losses realized during the pandemic. Companies like Green Plains (GPRE) and Renewable Energy (REGI) have seen shares rise 400-600% since the pandemic began, nevertheless, taxpayer funds and mandated blending requirements will ensure future investment in the food-to-fuel industry. Timing is noteworthy, with 2021 and 2022 blend requirements set to be announced Friday as well; the biofuel and agriculture lobby will push for ever higher blending mandates, while the purchase of credits to meet rising mandates could lift prices at the pump. Time will tell, but perhaps the seemingly arbitrary $700m payout

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Biden to send $700m "Covid relief" check to biofuel industry ahead of quota release