|Day's Range||357.50 - 371.50|
WASHINGTON/NEW YORK (Reuters) - U.S. President Donald Trump, faced with mounting anger in the farm belt over policies that allow oil refineries to use less corn-based ethanol, summoned Cabinet members on Thursday to discuss ways to boost biofuel demand, four sources familiar with the matter said. Throughout his 2016 campaign that brought him to power, Trump championed ethanol but also courted the oil industry. Trump met with Agriculture Secretary Sonny Perdue and Environmental Protection Agency (EPA) Administrator Andrew Wheeler at the White House, the sources said.
Technically, corn futures looks heavy and studies are signaling more room for the downside with the 3.60 area as the next critical support. Below there, please check the 3.50 and 3.40 levels as essential zones of buying.
NEW YORK/WASHINGTON, Aug 20 (Reuters) - President Donald Trump's administration has been scrambling to stem the tide of rising anger in Farm Belt states after its decision this month to allow numerous oil refiners to mix less ethanol into their gasoline, sources told Reuters on Tuesday. Trump held a two-hour meeting on Monday with members of his Cabinet after hearing blowback from farmers after the decision to grant exemptions from the nation's biofuel laws to 31 refineries, two sources familiar with the discussions said. Iowa, the nation's largest producer of corn and ethanol, is a swing state won by Democrat Barack Obama in consecutive elections before Trump rode to victory in 2016 in part by promising to support ethanol.
A Russian Airbus with more than 230 people on board was forced to make an emergency landing in a corn field outside Moscow on Thursday after hitting a flock of seagulls, officials said. There were no immediate reports of serious injuries. The Ural Airlines A321 was carrying 226 passengers and seven crew from Moscow's Zhukovsky airport to Simferopol in Russia-annexed Crimea, the Rosaviatsia air transport agency said in a statement.
Ethanol futures prices are trading at five-year lows, adding the corn-based fuel to the roster of agricultural commodities piling up in storage across the U.S.
The USDA estimated in a monthly report that 90 million acres of corn were planted by farmers this year—greater than market expectations, traders said.
A group representing the country's small fuel retailers has filed a lawsuit this week against the Environmental Protection Agency over its rule lifting a ban on the year-round sales of higher ethanol blends of gasoline, a court filing showed on Friday. Delivering on a campaign promise, President Donald Trump has directed the EPA to lift an Obama administration ban and allow U.S. gasoline stations to sell, year-round, blends containing up to 15 percent corn-based ethanol, called E15. The move was seen as a win for the U.S. farm lobby, which has pushed for widespread use of corn-based ethanol but marked a setback for the oil industry, which views biofuels as competition against its petroleum-based fuels and has threatened to sue the administration.
Grains as soybeans, corn, and wheat have opened the week with losses after the USD/CNY broke the 7.000 level for the first time in a decade as China let it do it as a retaliation for the latest president Donald Trump tariffs measures.
Democratic presidential hopeful Elizabeth Warren is a champion of the corn-based ethanol industry when she campaigns in rural towns dotting the U.S. Farm Belt. The competing stances, shared by Democratic candidates including U.S. Senator Bernie Sanders, illustrate how the party's growing orthodoxy on climate change often clashes with local political realities. While environmental groups and progressives applaud Democrats' calls for dramatic action to combat climate change, ethanol enjoys strong support in the Farm Belt, where agribusiness workers helped deliver the White House to President Donald Trump in 2016.
U.S. ethanol plants are expected to sharply curtail production in the weeks ahead as steep Midwest corn prices and the U.S.-China trade war have led to weak margins and oversupply, industry sources said. Margins to produce ethanol in the Corn Belt - where most U.S. production takes place - have fallen to a four-year seasonal low, while ethanol inventories are at the highest seasonally since at least 2010. Industry sources said this glut makes future cuts inevitable, particularly as corn prices are making production even more expensive.
A disappointing planting season due to massive flooding in the U.S. Midwest this spring is expected to have spillover effects on diesel demand during harvest season, analysts and traders said. Heavy storms that lingered over the Midwest left millions of acres unseeded and put crops that were planted late at a greater risk for damage from severe weather during the growing season, which is expected to reduce overall harvested acres in the fall. Usually, Midwest diesel demand jumps during corn and soybean harvest season around September and October as farmers rely on equipment that runs on the fuel.
U.S. President Donald Trump’s request for a review of the administration’s expanded use of biofuel waivers for oil refiners is holding up its decisions on 2018 applications, according to three sources familiar with the matter, two of whom said Trump may soon host a meeting on the issue. Trump had ordered https://www.reuters.com/article/us-usa-biofuel-trump/trump-orders-review-of-controversial-biofuel-waiver-program-sources-idUSKCN1TL1WL members of his Cabinet to review the controversial waiver programme, which exempts small refiners in financial turmoil from their obligation to blend ethanol into gasoline, last month after hearing from farmers angry about the issue during his recent Midwest tour. Since Trump took office, the Environmental Protection Agency has more than quadrupled the number of waivers it has granted to refiners, saving the oil industry hundreds of millions of dollars, but enraging another key constituency - corn growers - who claim the move threatens ethanol demand.
India lowered import taxes on an additional 400,000 tonnes of corn to 15%, the government said on Tuesday, to offset a rise in the price of animal feed in the country following a drought last year. India allowed imports of 100,000 tonnes of corn at the concessional tax rate in June. The additional 400,000 tonnes of imports were permitted at the same rate following a request from the poultry industry, the government said in a statement.
The U.S. Environmental Protection Agency (EPA) on Friday proposed refiners increase the volume of biofuels blended into their annual fuel output but did not reallocate the waived amounts under the hardship program, drawing ire from powerful corn and biofuel groups as well as Republican senators. The EPA is charged with setting biofuel blending requirements for the refining industry as part of the Renewable Fuel Standard (RFS), a more than decade-old regulation that is aimed at helping farmers and reducing U.S. dependence on oil. RFS and the waiver program, known as the Small Refinery Exemption (SRE) program, have increasingly been at the forefront of a heated political debate between the influential corn and oil lobbies, leaving President Donald Trump struggling to find a balancing act between the two important constituencies as he eyes re-election next year.
According to the USDA annual acreage report, farmers seeded 91.7 million of acres of corn and 80 million acres of soybeans, well-below of government forecast of 92.8 million corn acres and 84.6 million acres of soybeans.
Corn futures dropped Friday, setting prices up for their lowest settlement in over two weeks after a report from the U.S. Department Agriculture showed a higher-than-expected estimate for June corn acreage plantings. "The markets were definitely surprised by the extent to which the promise of government subsidies, that were contingent upon farmers actually planting a crop versus taking 'prevent plant insurance' motivated farmers to plant corn," said Sal Gilbertie, president and chief investment officer at Teucrium Trading. "The fact that farmers seem to have planted more corn acres than last year [was surprising as the market] had priced in far less corn acres due to bad weather in the farm belt," he said. "The temporary limit-down price action feels like short-term traders exiting positions until future crop reports clarify the extent to which yields will be affected by the persistent poor weather conditions endured by farmers this spring," said Gilbertie. The most-active December corn contract fell 17 cents, or 3.8%, to trade at $4.34 a bushel in Chicago.
Soybeans and corn are trading positive on the day but moving with caution as market are digesting both sides reports.
Indian state-run trading company MMTC has for the seventh time postponed the deadline for offers to be submitted in an international tender to import yellow corn, this time to June 27, European traders said on Wednesday. The deadline for the tender, seeking corn (maize) free of genetically-modified organisms (GMOs), was originally May 8 and has been frequently postponed since then. The volume purchased will be decided by MMTC depending on the level of prices received.
grains are closing the week mixed amid weather conditions in the United States and Russia. Corn retreats from highs but remains positive.