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Shortly after the turn of the century, U.S. government officials banned methyl tertiary butyl ether, or MTBE, a gasoline additive that boosts octane. Demand for ethanol, and corn, got another huge boost when the U.S. government imposed rules calling for every tank of gasoline to contain 10% renewable fuels. How the agricultural sector responded, and what happened in commodity markets, is a tale worth remembering as more people shift from meat to vegetable protein.
When combining money managers' net positions in CBOT corn, wheat, soybeans, soybean meal, soybean oil, along with Kansas City and Minneapolis wheat, the overall net short reached 683,501 futures and options contracts as of April 30, up from 656,078 a week prior, which was the previous record. The agriculture market has been grappling with record U.S. soybean stocks and rising corn stocks, an excellent U.S. wheat crop, and strong export competition among major world suppliers for all three products. Feed demand in China, which imports massive quantities of soybeans for its hog herd, has recently been disappointing as the country is battling an outbreak of deadly African swine fever.
Indian state-run trading company MMTC has postponed the deadline for offers in an international tender to import yellow corn (maize) to May 15 from May 8, European traders said on Monday. The volume purchased will be decided by MMTC later depending on the level of prices received but minimum offers are 20,000 tonnes. The tender seeks corn free of genetically modified organisms (GMOs) from any origins.
Margins have taken a beating as President Donald Trump’s trade war halts sales to China, exacerbating a glut of the corn-based biofuel. “There are publicly a lot of plants for sale and you can look at them and understand why the economics are so difficult,” James Pirolli, who heads Andersons’ ethanol business, said by telephone. Ethanol prices are near the lowest in a decade and margins were just above break-even at 15 cents a gallon on Tuesday amid high stockpiles, according to AgResource.
The United States won a World Trade Organization ruling on Thursday against China's use of tariff-rate quotas for rice, wheat and corn, which it successfully argued limited market access for U.S. grain ...
The U.S. Department of Agriculture (USDA) lowered its export projections for corn and wheat in the 2018-2019 harvest season amid slumping grain volumes and Midwest rail operations coping from last month's record flooding. In USDA's World Agricultural Supply and Demand Estimates report that it updates monthly, USDA estimated that U.S. corn exports will total 945 million bushels in 2018-2019, compared with its March estimate of 965 million bushels. U.S. corn exports are projected to total 2.3 billion bushels, down from estimates in March of nearly 2.38 billion bushels.
HAMBURG (Reuters) - Indian state-run trading company MMTC has issued an international tender to buy and import yellow corn (maize), European traders said on Tuesday. The volume purchased will be decided ...
HAMBURG (Reuters) - Indian state-run trading company MMTC has issued an international tender to buy and import yellow corn (maize), European traders said on Tuesday.
The U.S. Agriculture Department on Tuesday raised its outlook for how much corn will be left in grain elevators ahead of harvest this year due to falling demand from the export, feed and residual and ethanol sectors. Corn stocks as of September 1 were forecast at 2.035 billion bushels, USDA said in its monthly supply and demand report, up from its March forecast of 1.835 billion bushels. Analysts had been expecting corn stocks of 1.991 billion bushels, according to the average of analysts' estimates in a Reuters poll.
India has allowed poultry producers and starch manufacturers to import up to 100,000 tonnes of corn at a reduced duty of 15 percent, according to a government order on Thursday, to tide over a shortage triggered by pest infestations and dry weather. India, the world's seventh-biggest corn producer otherwise imposes a 60 percent import tax on the grain. Stung by a sharp rise in local prices, poultry producers and starch manufacturers had asked the government to allow imports of half a million tonnes of corn at a reduced rate.
Massive supplies of both U.S. corn and soybeans remained in storage bins around the country ahead of spring planting, U.S. Agriculture Department (USDA) data released on Friday showed. USDA also said that farmers planned to boost their corn plantings by 4.1 percent but severe flooding in the U.S. Midwest may curtail final acreage. "Nearly all of the data were collected before the flooding began," Lance Honig of USDA's National Agricultural Statistics Service said on Twitter.
The corn market looks ripe for gains, based on increased use of the commodity to make ethanol and flooding in the U.S. Midwest, which both threaten to significantly tighten global supplies.
WASHINGTON (AP) — The Trump administration is proposing to allow year-round sales of gasoline mixed with 15 percent ethanol, seeking to calm a dispute that has riled two politically important blocs — the oil industry and corn farmers.
The U.S. Environmental Protection Agency on Tuesday released its proposed rule ending the summertime ban of higher-ethanol blends of gasoline, a move requested by President Donald Trump to help corn growers that supply the raw material for the biofuel. The agency went ahead with the proposal over the objections of the oil industry, another political ally of the Trump administration which opposes increased biofuels use because it competes with petroleum and raises costs for refiners. "Consistent with President Trump’s direction, EPA is working to propose and finalize these changes by the summer driving season," said EPA Administrator Andrew Wheeler in a press release.
The U.S. Renewable Fuel Standard (RFS) laws are not working and there is an "opportunity for a reset" of the standard in Washington, Marathon Petroleum Corp Chief Executive Gary Heminger said on Tuesday. Heminger said that the standard has caused very volatile prices of those credits, and that it needs reform. The Trump Administration has attempted to reform the standard, but has maintained much of the existing framework of the law due to support from corn producers in Iowa and other farming states.
Corn futures trimmed some of their earlier losses Friday, after settling a day earlier at their lowest level year to date. The U.S. Department of Agriculture on Friday forecast lower corn use for ethanol, down 25 million bushels to 5.55 billion for 2018/2019 marketing year. It also reduced its U.S. export forecast by 75 million to 2.375 billion bushels and raised its U.S. ending stocks estimate by 100 million to 1.835 billion bushels. The USDA also lifted its expectations for soybean crush, the process of converting soybeans into meal and oil, by 10 million to 2.1 billion bushels. The report came in "exactly as expected, with the exception of slightly higher U.S. corn ending stocks," said Sal Gilbertie, president and chief investment officer at Teucrium Trading. May corn was at $3.65 a bushel, down a fraction of a cent in Chicago. May soybeans fell 5 cents to $8.97 1/2 a bushel in Chicago. A finish around this level would be the lowest since mid-January. May wheat rose 1 3/4 cents to $4.40 a bushel.
The Environmental Protection Agency will attempt to stamp out speculation in the U.S. biofuel credit market by barring trading by non-industry players, publicizing large positions, and improving price transparency, a source familiar with the agency's proposals told Reuters on Thursday. The measures, included in a broader policy reform under review by the Trump administration, are intended to help U.S. oil refiners cope with the costs of complying with the U.S. Renewable Fuel Standard. Under the law, passed in 2005 and expanded in 2007 partly to help expand farmers' market for corn, refiners must blend certain volumes of biofuels like ethanol into their fuel or purchase credits from those that do.
India is likely to import up to 1 million tonnes of corn this year as lower production and growing domestic poultry consumption boosts demand for overseas purchases, two traders estimated on Thursday. Below-normal monsoon rains and an infestation of the fall armyworm, which devastated African corn crops in 2017, have slashed India's corn output and boosted prices, increasing the chances the government will grant duty-free corn imports for the first time since 2016. "India is expected to buy anything between 500,000 tonnes and 1 million tonnes as local crop is lower," said one of the traders while on the sidelines of a grain industry conference in Singapore.
U.S. trade negotiators have asked their Chinese counterparts to lower tariffs on ethanol, a corn-based biofuel, Agriculture Secretary Sonny Perdue says. China's ethanol demand is expected to grow nearly sevenfold as the country prepares to introduce E10 fuel throughout the country next year. A breakthrough would bolster President Donald Trump, who has sparred with big agriculture over his administration's biofuel policy.