Dan Flynn is the writer of The Corn & Ethanol Report, a daily market letter covering grains, energies, and various global issues that are the driving force and backbone of the commodity markets. Contact Mr. Flynn at (312) 264-4374
Brazilian Agriculture Minister Tereza Cristina Dias said she will discuss U.S.-Brazil trade in meat, sugar and ethanol. One of her biggest priorities is to reopen the U.S. market for Brazil’s fresh beef exports, which were suspended two years ago over safety concerns. Marathon CEO Gary Heminger said the U.S. Renewable Fuel Standard laws are not working and there is an “opportunity for a reset” of the standard. RFS requires refineries to blend fuels with Ethanol to reduce pollution, or pay credits to subsidize those that do blending. Heminger who leads the largest U.S. Crude Oil refiner, said that the standard has caused very volatile prices for those credits, and that needs reform. There will be much to be said as Heminger said, “we need octane”, and “Ethanol is a great source of octane that shouldn’t be mandated. He also expects that U.S. refiners will begin inventory of the new maritime diesel fuel by middle 2019 to prepare for the change in the maritime fuel mandated by the International Maritime Organization (IMO). Lastly Heminger said Marathon has no interest in acquiring 3 refineries owned by Citgo Petroleum Corp. PDVSAC.UL which is Venezuelan troubled state-owned oil company. Another victim of socialism. In the overnight electronic session the May Corn is currently trading at 365 which is ¾ of a cent lower. The trading range has been 366 ¾ to 363 ¾.
On the Ethanol front the April contract is currently trading at 1.302 which is .009 lower. The trading range has been 1.316 to 1.301. The market is currently showing 2 bids @ 1.300 and 2 offers @ 1.304. 6 contracts traded and Open Interest is at 1,136.
On the Crude Oil front the market is rolling with bullish fundamentals and technical not to mention last nights bullish API data. This morning we have the EIA Energy Stocks at 9:30 A.M. that could really move the market. In the overnight electronic session the April Crude Oil is currently trading at 5774 which is 87 points higher. The trading range has been 5780 to 5701.
On the Natural Gas front we are trading higher with the monster winter storm that will bombard the central U.S. today. In the overnight electronic session the April contract is currently trading at 2.814 which is 3 cents higher. The trading range has been 2.814 to 2.762.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374