Recent Biofuels Analysis
Market Commentary
Modest volume in overnight trading featured mostly lower prices before the market turned higher heading into the morning break. Corn, soybean, and wheat futures all finished that session with 3-5 cent gains. The day session opened with notable buy corn/sell soybeans action that left the soy com...
Welcome and Unwelcome Biodiesel Policies Are Moving, Albeit Slowly
Two major policy issues for biodiesel are on the docket: 1) a review of the countervailing duties (CVDs) on biodiesel imports from Argentina, and 2) the retroactive extension of the biodiesel tax credit (BTC). The most likely time frame for action on either appears to be in the fourth quarter o...
Market Commentary
Overnight trading was weaker with modest volume and choppy price action as the trade waits for tomorrow’s July WASDE. Open interest grew for corn, soybeans, and wheat as traders and commercials are apparently adding to positions ahead of the report. Midwest weather is warmer and features...
China In-Country Analysis
Oilseeds Soymeal Inventory Climbs for Fifth Straight Week With feed demand continuing to soften as more previously unidentified African swine fever (ASF) cases come to light, soybean inventories rose again to reach 924,700 MT as of 5 July 2019. That was 29,700 MT (+3.3 percent) higher than the...
Can’t Beat Beet Molasses
Molasses left over from the processing of beets for sugar is typically the poor cousin to the molasses that results from making sugar from sugarcane. Cane-based molasses has superior nutritional qualities and has historically earned a premium. USDA pricing from more than a decade ago shows a 50...
Ethanol Facing Structural Changes in Liquid Fuel Market
The old saying “can’t see the forest for the trees” may be apt for the ethanol outlook for the next few years. Indeed, there’s been a great deal of looking at such trees as year-round E15 usage, small refinery wavers, the 2020 required volumes, and the upcoming Renewable...
EPA Announces 2020 Biofuel Volumes
EPA Administrator Andrew Wheeler signed the agency’s proposed 2020 Required Volume Obligations (RVO) under the Renewable Fuel Standard (RFS) today, which will be published next week in the Federal Register and be open for public comments. The EPA will also hold a public hearing on the pro...
Ethanol Margins Low, Politics High
USDA released its Grain Crushing and Co-Production report today; total ethanol use of corn in May was 460 million bushels, which stands at 104 percent of April but 98 percent from the same period last year. DDGS production was 1.94 million tons. Corn gluten feed production from wet...
Market Commentary
Overnight trading saw widespread pressure that continued yesterday’s turn lower. Corn fell 3.5 cents, soybeans lost 4 cents, SRW wheat dropped 4.75 cents, and HRW futures were 16.75 cents lower. Weather across the U.S. is looking more favorable for crop development, which is pressuring bu...
China In-Country Analysis
Livestock Meat Imports Surge in May as Domestic Shortfall Increases Monthly data from China’s Customs Bureau shows that total meat and offal imports hit a record high of 556,276 MT in May, up 45 percent from 383,639 MT in May 2018.This was driven by the ongoing impact of African swine fev...
Biodiesel Tax Credit and RFS Volumes with Some Surprises
The House Ways and Means Committee completed action on a tax extender package last Thursday night. It includes a three-year extension of the $1/gallon tax credit for biodiesel blending that matches the language already introduced in the Senate, meaning this will probably move through a House-Se...
Market Commentary
Grain and soy complex futures were mostly lower overnight with the corn market’s recent support diminishing. Soybeans were choppy with headlines about a potential Trump/Xi meeting being balanced against the overall bearishness of soybean fundamentals. Overall, the market was characterized...
Market Commentary
Modest volume in overnight trading featured mostly lower prices before the market turned higher heading into the morning break. Corn, soybean, and wheat futures all finished that session with 3-5 cent gains. The day session opened with notable buy corn/sell soybeans action that left the soy com...
Welcome and Unwelcome Biodiesel Policies Are Moving, Albeit Slowly
Two major policy issues for biodiesel are on the docket: 1) a review of the countervailing duties (CVDs) on biodiesel imports from Argentina, and 2) the retroactive extension of the biodiesel tax credit (BTC). The most likely time frame for action on either appears to be in the fourth quarter o...
Market Commentary
Overnight trading was weaker with modest volume and choppy price action as the trade waits for tomorrow’s July WASDE. Open interest grew for corn, soybeans, and wheat as traders and commercials are apparently adding to positions ahead of the report. Midwest weather is warmer and features...
China In-Country Analysis
Oilseeds Soymeal Inventory Climbs for Fifth Straight Week With feed demand continuing to soften as more previously unidentified African swine fever (ASF) cases come to light, soybean inventories rose again to reach 924,700 MT as of 5 July 2019. That was 29,700 MT (+3.3 percent) higher than the...
Can’t Beat Beet Molasses
Molasses left over from the processing of beets for sugar is typically the poor cousin to the molasses that results from making sugar from sugarcane. Cane-based molasses has superior nutritional qualities and has historically earned a premium. USDA pricing from more than a decade ago shows a 50...
Ethanol Facing Structural Changes in Liquid Fuel Market
The old saying “can’t see the forest for the trees” may be apt for the ethanol outlook for the next few years. Indeed, there’s been a great deal of looking at such trees as year-round E15 usage, small refinery wavers, the 2020 required volumes, and the upcoming Renewable...
EPA Announces 2020 Biofuel Volumes
EPA Administrator Andrew Wheeler signed the agency’s proposed 2020 Required Volume Obligations (RVO) under the Renewable Fuel Standard (RFS) today, which will be published next week in the Federal Register and be open for public comments. The EPA will also hold a public hearing on the pro...
Ethanol Margins Low, Politics High
USDA released its Grain Crushing and Co-Production report today; total ethanol use of corn in May was 460 million bushels, which stands at 104 percent of April but 98 percent from the same period last year. DDGS production was 1.94 million tons. Corn gluten feed production from wet...
Market Commentary
Overnight trading saw widespread pressure that continued yesterday’s turn lower. Corn fell 3.5 cents, soybeans lost 4 cents, SRW wheat dropped 4.75 cents, and HRW futures were 16.75 cents lower. Weather across the U.S. is looking more favorable for crop development, which is pressuring bu...
China In-Country Analysis
Livestock Meat Imports Surge in May as Domestic Shortfall Increases Monthly data from China’s Customs Bureau shows that total meat and offal imports hit a record high of 556,276 MT in May, up 45 percent from 383,639 MT in May 2018.This was driven by the ongoing impact of African swine fev...
Biodiesel Tax Credit and RFS Volumes with Some Surprises
The House Ways and Means Committee completed action on a tax extender package last Thursday night. It includes a three-year extension of the $1/gallon tax credit for biodiesel blending that matches the language already introduced in the Senate, meaning this will probably move through a House-Se...
Market Commentary
Grain and soy complex futures were mostly lower overnight with the corn market’s recent support diminishing. Soybeans were choppy with headlines about a potential Trump/Xi meeting being balanced against the overall bearishness of soybean fundamentals. Overall, the market was characterized...