Market Overview

Senate Votes In Favor Of Repealing Ethanol Subsidy

In a huge move, the Senate has voted in favor of ending the tax breaks and tariffs for ethanol production, which is hurting shares of the ethanol producers and fertilizer names.

The Senate voted 73-27 in favor of ending the subsidies, and names like Archer Daniels Midland (NYSE: ADM), Green Plains Renewable Energy Inc. (NASDAQ: GPRE), The Andersons, Inc. (NASDAQ: ANDE) are being hit hard on the news.

Pacific Ethanol, Inc. (NASDAQ: PEIX) and VeraSun Energy (NYSE: VSE) are also being hit sharply on the news.

The fertilizer names are being hit as well, on concerns that less corn will be planted. Potash (NYSE: POT), CF Industries (NYSE: CF) and Mosaic (NYSE: MOS) are also down on the news.

Posted-In: ethanol US SenateNews Legal Movers

 

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