Recent Biofuels Analysis
Crude Oil and Feedlot Rations
As Gary Blumenthal reported yesterday, efforts are afoot to put a safety net under global crude oil prices. President Trump is communicating with Saudi Arabia and Russia to coordinate a détente in their price and production war, and the so-called OPEC-Plus group, which includes OPEC memb...
Market Commentary
The CBOT was called mixed/lower to start today and it did just that. Corn and the soy complex were subject to fund selling and broke key technical support points while the wheat market strengthened on news of a Russian export quota. The livestock markets are in complete disarray and swung from...
COVID Domino Effect on Feed Rations and More
The COVID19 outbreak is like a pinball bouncing from sector to sector of the economy. In agriculture, for example, with shutdowns in place, transportation energy use is down, which has reduced ethanol demand, which in turn has reduced the production of DDGS, which in turn is creating a new puzz...
Upcoming RVO as Messy as SRE Issue
The U.S. West Texas Intermediate crude futures settled at $20.09/gallon, its lowest level since February 2002, and actually dipped below $20.00/gallon during trading. This makes a mess for blending economics for biofuel use. But there is a bigger problem – or two. First, the bearish oil p...
Energy Situation Recap
Ethanol markets continue to be battered on both sides: the COVID19 related demand drop and the Russia-Saudi Arabia price war supply shock. Ethanol values are following corn up and down with all the other gyrations in the market. Facing a deadline of Tuesday 31 March (which is the en...
Market Commentary
The CBOT opened mixed today with corn and soyoil posting new contract lows amid continued short selling. Commercial demand for wheat pulled that commodity higher and brought in buy wheat/sell corn spread trade. Commercial pricing in corn and the soy complex was notable today as bargain buying c...
Less Bad Situation
As pointed out by WPI contributor Jody Lefcourt, this is only the third time since the year 2000 that corn has been below $3.30/bushel. But agricultural commodity prices have thus far only fallen modestly relative to the scale of the current global disease and economic crisis. Moreover, overall...
Liquid Fuels Relief Request
The Renewable Fuels Association yesterday requested “equitable” relief for the “liquid fuel industries” given the coronavirus and the Russian/Saudi crude oil price war. In a statement, RFA noted: While the policy response to turbulence in the energy markets has so...
Oilseed Highlights: Brazil Soy Crop; Argentine Soy Exports; Crude Oil Collapse; U.S. PNW Soy
Forecast for Brazil’s Soybean Crop Increased Brazil’s crop supply agency (CONAB) this week increased its forecast for the 2020 Brazilian soybean crop. Its latest forecast is for a crop of 124.205 MMT (4.563 million bushels), up from its February forecast of 123.25 MMT (4.528 billion...
Market Commentary
“Pandemic” is the word of the day. The World Health Organization declared the coronavirus COVID19 outbreak an official pandemic today, which brought no comfort to global markets. The disease is keeping markets extremely volatile and the potential for governments to make economically...
Biofuels Waiting on EPA’s Decision on SREs
Last Thursday at a hearing of the House Energy and Commerce Committee, the EPA Administrator said that a decision on how EPA would review and grant small refinery exemptions (SREs) would come within “days, not weeks.” The clock is ticking. The review is being driven by a decision of...
Biofuels: SREs and Renewable Diesel Trends
The RINs market reacted to a news story that EPA was planning on being stingy with future small refinery exemptions (SREs). That speculation was addressed by Administrator Wheeler at a House Energy and Commerce Committee hearing yesterday. Wheeler said no decisions have been made about the SRE...
Crude Oil and Feedlot Rations
As Gary Blumenthal reported yesterday, efforts are afoot to put a safety net under global crude oil prices. President Trump is communicating with Saudi Arabia and Russia to coordinate a détente in their price and production war, and the so-called OPEC-Plus group, which includes OPEC memb...
Market Commentary
The CBOT was called mixed/lower to start today and it did just that. Corn and the soy complex were subject to fund selling and broke key technical support points while the wheat market strengthened on news of a Russian export quota. The livestock markets are in complete disarray and swung from...
COVID Domino Effect on Feed Rations and More
The COVID19 outbreak is like a pinball bouncing from sector to sector of the economy. In agriculture, for example, with shutdowns in place, transportation energy use is down, which has reduced ethanol demand, which in turn has reduced the production of DDGS, which in turn is creating a new puzz...
Upcoming RVO as Messy as SRE Issue
The U.S. West Texas Intermediate crude futures settled at $20.09/gallon, its lowest level since February 2002, and actually dipped below $20.00/gallon during trading. This makes a mess for blending economics for biofuel use. But there is a bigger problem – or two. First, the bearish oil p...
Energy Situation Recap
Ethanol markets continue to be battered on both sides: the COVID19 related demand drop and the Russia-Saudi Arabia price war supply shock. Ethanol values are following corn up and down with all the other gyrations in the market. Facing a deadline of Tuesday 31 March (which is the en...
Market Commentary
The CBOT opened mixed today with corn and soyoil posting new contract lows amid continued short selling. Commercial demand for wheat pulled that commodity higher and brought in buy wheat/sell corn spread trade. Commercial pricing in corn and the soy complex was notable today as bargain buying c...
Less Bad Situation
As pointed out by WPI contributor Jody Lefcourt, this is only the third time since the year 2000 that corn has been below $3.30/bushel. But agricultural commodity prices have thus far only fallen modestly relative to the scale of the current global disease and economic crisis. Moreover, overall...
Liquid Fuels Relief Request
The Renewable Fuels Association yesterday requested “equitable” relief for the “liquid fuel industries” given the coronavirus and the Russian/Saudi crude oil price war. In a statement, RFA noted: While the policy response to turbulence in the energy markets has so...
Oilseed Highlights: Brazil Soy Crop; Argentine Soy Exports; Crude Oil Collapse; U.S. PNW Soy
Forecast for Brazil’s Soybean Crop Increased Brazil’s crop supply agency (CONAB) this week increased its forecast for the 2020 Brazilian soybean crop. Its latest forecast is for a crop of 124.205 MMT (4.563 million bushels), up from its February forecast of 123.25 MMT (4.528 billion...
Market Commentary
“Pandemic” is the word of the day. The World Health Organization declared the coronavirus COVID19 outbreak an official pandemic today, which brought no comfort to global markets. The disease is keeping markets extremely volatile and the potential for governments to make economically...
Biofuels Waiting on EPA’s Decision on SREs
Last Thursday at a hearing of the House Energy and Commerce Committee, the EPA Administrator said that a decision on how EPA would review and grant small refinery exemptions (SREs) would come within “days, not weeks.” The clock is ticking. The review is being driven by a decision of...
Biofuels: SREs and Renewable Diesel Trends
The RINs market reacted to a news story that EPA was planning on being stingy with future small refinery exemptions (SREs). That speculation was addressed by Administrator Wheeler at a House Energy and Commerce Committee hearing yesterday. Wheeler said no decisions have been made about the SRE...