Hear that sound? That’s the sound of Archer-Daniels-Midland’s (ADM) shares running out of gas.
Associated Press Archer’s stock has dropped 3.1% to $40.70 after reports that the EPA would cut the amount of ethanol required to be added to gasoline. The Wall Street Journal has the details:
The Environmental Protection Agency on Friday proposed for the first time to ease an annual requirement for ethanol in gasoline, acknowledging that mandated levels specified in a 2007 law are difficult, if not impossible, to meet.
The EPA is asking refiners in 2014 to blend 15.2 billion gallons of renewable fuel—most of it ethanol—into U.S. gasoline supplies. That is about 16% less than what Congress specified in a 2007 renewable fuels law. The law gives EPA the ability to lower the requirement.
Archer isn’t the only stock being hit today. Bunge (BG) has dropped 0.3% to $81.91, while Andersons (ANDE) has fallen 2.2% to $81.55.
Archer was already weak after reports that Australia would block its takeover of GrainCorp.
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