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The CFTC reported that money managers cut their net short position in nearly all grains which led to a further short squeeze higher. Export sales in wheat were stronger than expected but this was not the same for corn sales. Weekly corn export sales for the 2017/18 marketing season of 1,769.6 TMT were down 4% from the week prior but 26% more than the prior 4-week average. There were no new crop sales, leaving combined sales at 1,769.6 TMT. Total sales were within analyst expectations that ranged from 1,000 to 2,050 TMT.
The head of the U.S. Environmental Protection Agency said on Thursday that the recent bankruptcy of a Pennsylvania oil refiner was evidence the nation's biofuel policy needs an overhaul in comments that infuriated biofuels advocates. The company blamed the cost of complying with the U.S. Renewable Fuel Standard (RFS), a law requiring refiners to blend corn-based ethanol and other biofuels into their gasoline and diesel. EPA chief Scott Pruitt said in an interview with Fox News that the bankruptcy largely stemmed from the RFS, and cited the program's requirement that refiners earn or purchase biofuel blending credits called RINs to prove to the EPA that they were meeting their obligations.
The head of the U.S. Environmental Protection Agency said on Thursday that the recent bankruptcy of Pennsylvania oil refiner Philadelphia Energy Solutions was evidence that the nation's biofuel policy needs an overhaul. It blamed the cost of complying with the U.S. Renewable Fuel Standard, which requires refiners to blend corn-based ethanol and other biofuels into their gasoline and diesel. EPA chief Scott Pruitt agreed in an interview with Fox News that the bankruptcy largely stemmed from the RFS.
Grain prices continued to pull back in early North American trade on Thursday. Trader’s are now more concerned with precipitation that is expected to pass through the grain belt of Argentina. The dollar continued to trade under pressure on Thursday which is buoyed grain prices. Corn is hovering near the 50% Fibonacci retracement level that comes from the drop from the highs last July near 3.93, to the lows seen in September near 3.28, which comes in near 3.61. Prices could retrace back to their breakout level which is a downward sloping trend line which was former resistance that is now support near 3.55 per bushel.
By Jarrett Renshaw NEW YORK (Reuters) - More than two dozen small U.S. refineries are seeking waivers from the nation's biofuels law, an unusually high number that reflects growing oil industry resistance to the program, according to sources familiar with the matter. Prices of the most popular renewable fuel credits dropped to 61 cents in early trading on Thursday following the Reuters report, a near eight-month low and down from 64 cents on Wednesday, traders said. The requests to the U.S. Environmental Protection Agency add pressure to the Trump administration to help an industry that claims the U.S. Renewable Fuel Standard (RFS) costs it billions of dollars a year by requiring refiners to blend increasing volumes of biofuels like ethanol into gasoline and diesel.
Grain prices are starting to diverge following the National Oilseed Processing Association’s reported on crushing. Strong demand for soybean meal has lifted the entire soybean complex, following the blowout number. Corn and wheat prices remain subdued by the short position amassed by hedge funds could lead to a short squeeze in corn.Corn Prices
Valero Energy Corp, America's largest oil refiner, has left the Renewable Fuels Association due to cost cutting, just over a year after becoming the powerful ethanol lobbying group's biggest member, the company said in a statement. Valero had joined the RFA in November 2016 as part of an unsuccessful influence campaign to win support for reforms to the nation's biofuels policy - which it says costs it hundreds of millions of dollars a year - according to a Reuters investigation. The biofuels law, called the Renewable Fuel Standard, requires oil refiners to blend increasing volumes of biofuels such as corn-based ethanol into the nation's fuel each year, or buy paper credits from companies that do.
Grain prices have been trading under pressure since early January following the most recent World Agriculture report released by the U.S. Department of Agriculture. Corn, Soybean, and Wheat production in the United States were in line with expectations but showed that acres used to grow grains increased, while South American yields were buoyed. Demand remains steady for soybean, as exports of soybean meal continue to attract Asian buyers, but wheat demand is subdued which is weighing on prices.Corn Prices
U.S. agribusiness Cargill plans to expand its starches and sweeteners factory in Krefeld, Germany, and switch to using wheat as a raw material, it said on Friday. The Krefeld plant currently produces starches and sweeteners from corn for products including jams, sweets, chewing gum and custard powder. Work will be completed in 2020," a Cargill spokeswoman said without providing figures on production capacity or tonnage of wheat involved.
U.S. farmers who sought to boost revenues by planting corn used to make tortillas may be forced to sell their crops at a loss to makers of ethanol or animal feed because of a glut of what typically is a human food-grade product. Oversupply of the most common grains such as corn and soybeans has spread to niche markets because so many farmers have switched to planting different strains of seed to diversify and bolster returns after four years of bumper crops cut farm income and pushed down prices for staple grains. White corn, which makes up roughly 1 percent of the 14.6 billion-bushel U.S. corn harvest, can command a premium of as much as $1 per bushel over the commoditized yellow strain.
Another cold snap in the United States is set to eat into profits for U.S. ethanol makers after output of the corn-based biofuel fell sharply for a second straight week. Higher natural gas prices amid some of the coldest temperatures in the Midwest in years have raised costs for ethanol makers who use it to operate their plants. Bitterly cold temperatures were forecast to return early next week in the Midwest region where most U.S. ethanol plants are located, after a brief warmup this week, according to the Commodity Weather Group.
Senator John Cornyn, the No. 2 Senate Republican, is trying to win support from the Midwest corn lobby for a broad legislative overhaul of the nation's biofuels policy, according to sources familiar with the matter. The effort comes as President Donald Trump's White House mediates talks between the rival oil and corn industries over the Renewable Fuel Standard, which requires oil refiners to blend increasing amounts of corn-based ethanol and other biofuels in the nation's fuel supply every year. Cornyn "is working hard to unify all stakeholders in a consensus effort to reform the Renewable Fuel Standard," an aide to the senator told Reuters.
President Donald Trump's administration called two lawmakers from the U.S. corn belt to convince them to join talks about potential changes to biofuels policy to ease the burden on oil refineries, according to a spokesman for one of the lawmakers and a source briefed on the matter. The effort is the clearest sign yet Trump is seeking to mediate the long-running dispute between the U.S. oil industry and corn growers over the Renewable Fuel Standard (RFS), a law requiring refiners to blend increasing volumes of biofuels like corn-based ethanol every year into the nation's fuels. Refiners say the law is putting them out of business, but ethanol interests have vehemently opposed any changes.
Monsanto Co believes the summer corn area in Brazil may drop between 20 and 30 percent in the 2017-2018 cycle, Rodrigo Santos, Chief Executive of South American operations, told reporters on Wednesday at an event in São Paulo. Santos said total corn area should also fall after Brazil plows its second corn crop of the year, planted after soybeans are harvested, but could not provide an estimate for the drop. An expected reduction in winter corn investments is also likely to impact that crop.
The U.S. Environmental Protection Agency said on Thursday it will require fuel companies to blend slightly more biofuels into the nation's gasoline and diesel next year, angering oil refiners who view them as a competitive threat. The announcement follows weeks of lobbying by Midwestern lawmakers and representatives of the corn industry who wanted the agency to reject recent proposals from the oil industry to water down the U.S. biofuels mandates. "Maintaining the renewable fuel standard at current levels ensures stability in the marketplace and follows through with my commitment to ... upholding the rule of law," EPA Administrator Scott Pruitt said in a news release.
China imported no iron ore, lead or coal from North Korea in October as sanctions against the isolated nation came into force, while the world's second-largest economy didn't export any diesel, gasoline or corn, data showed on Friday. The data represents the first whole month since the latest U.N. penalties came into force on Sept. 5, banning Pyongyang from selling coal, iron ore, lead, lead ore and seafood abroad. It was the first time since July 2015 that China has not sold any gasoline to its northern neighbour and it was the first time since August 2016 that it sold no diesel, data from China's General Administration of Customs showed.
Brazilian grain exporters association Anec revised upward its forecast on Thursday for corn exports this year, but commodities traders operating in the country may still see their worse performance in a decade as margins are squeezed amid a bumper harvest. Although Brazil is expected to export record volumes of soybeans and corn in 2017, it will prove to be a tough year for commodities traders' financial results, Luís Barbieri, president of Anec, Barbieri said at the same event.
CME Group will launch next month Black Sea wheat and corn futures based on Platts price benchmarks to extend its presence in a booming export region. The wheat contract will be based on Platts Russian Wheat 12.5 percent protein FOB (free on board) Black Sea Deep Water daily price assessment.
CME Group is to launch next month Black Sea wheat and corn futures based on S&P Global Platts' price benchmarks to target the fast-growing exporting region. The cash-settled Black Sea Wheat FOB and Black ...
Economy Candy, on New York City’s Lower East Side, is a narrow, messy store packed with nuts, dried fruits, and classic sweets like Nerds and Junior Mints. The packaging of this Tootsie Roll is very forthright about the fact that it’s made using genetically engineered ingredients. Probably all candy is now made with GM corn…
CHICAGO/NEW YORK Nov 2 (Reuters) - DuPont Industrial Biosciences, a unit of DowDuPont Inc, on Thursday said it halted operations at a two-year-old ethanol plant and will sell it, dealing another blow to efforts to create biofuels without using food crops. The U.S. Environmental Protection Agency (EPA) this year has pushed to lower the amount of cellulosic biofuels that need to be blended into the nation's fuels under a 2007 mandate, arguing the industry has not produced enough. DuPont spent about $225 million to build the facility, which used corn stalks and stems to make ethanol, which is blended into gasoline.
Nine U.S. senators from states that have oil refineries sent a letter to President Donald Trump on Thursday urging changes to biofuels policy and asking for a meeting to discuss the issue. The letter reflects growing tensions between refiners that oppose the U.S. Renewable Fuel Standard, a law requiring them to blend increasing amounts of ethanol into fuel each year, and the Midwest corn lobby that supports it. The Trump administration bowed to rising pressure from Midwest lawmakers last week, assuring them in letters and phone calls that it would ditch proposals, supported by the refining industry, to overhaul the biofuels policy.
Wheat for Dec. was up 10.75 cents at 4.3675 a bushel; Dec. corn rose 6.75 cents at 3.5125 bushel; Dec. oats gained 3.75 cents at $2.7350 a bushel; while Nov. soybeans was 2 cents higher at $9.8075 a bushel. ...
Grain trading house Sierentz Global Merchants registered a subsidiary in Ukraine last week to be headed by former Louis Dreyfus trader Lamprakis Lazos, a government registry showed. Several sources have previously said that a group of ex-Louis Dreyfus traders who quit the business in late August were planning to launch a new business targeting the Ukrainian market, with one source pointing to Sierentz. Ukraine is one of the world's largest grain exporters, shipping corn and wheat in competition with the European Union and United States.