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Investing.com -- Shares of Darling Ingredients (NYSE:DAR) dropped as much as 9% today, as the Trump administration moves forward with its review of biofuel-blending quotas, potentially impacting the company’s operations.
The Environmental Protection Agency’s proposed Renewable Volume Obligations (RVOs) are now under review by the White House budget office, indicating that the new biofuel mandates could be announced within the next 2-4 weeks, noted a report from Bloomberg. This regulatory development has raised concerns among investors about the future cost and supply of feedstocks for biofuel producers like Darling Ingredients.
Adding to the unease, Darling Ingredients CEO Randall Stuewe commented at a BMO conference on Wednesday that the sector’s margins had suffered due to an influx of inexpensive biofuel and feedstocks from Asia.
Investors are closely monitoring the situation as the final RVOs could significantly influence Darling Ingredients’ operational costs and profitability. The company’s stock movement today reflects the market’s reaction to the regulatory uncertainties and the CEO’s comments on the current state of the biofuel market.
Darling Ingredients shares pared declined but were lower by about 6.70% midmorning.
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