The weather markets have hit ethanol, providing some welcomed price relief. The flooding in the Corn Belt has interrupted shipping/delivery and given a bump to ethanol prices, especially on the West Coast. Right now, producer margins are improved, and blender margins are tighter. Gasoline prices remain well below year-ago levels as overall supplies remain near the peak of their five-year average. While blending components for ethanol are now back down to 2018 levels, that draw is from a steep build earlier in the year.
How long this situation lasts and what the longer-term impact on margins will be are still to be determined. First, there will be repercussions in the corn market from the Midwest flooding; and second, the transportation...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...