Ethanol producers were already dealing with building inventories, lower blending rates and cheaper crude oil (U.S. crude production was up 17 percent in 2018). Now the recent flooding has impacted 10-15 percent of ethanol production in Nebraska, Iowa and South Dakota. The biggest impact has been from the shutdown of rail lines that deliver corn and ship out ethanol production. Feedstock use is dropping further while ethanol inventories are building, depressing local hub prices. The lack of deliveries is driving up retail fuel prices, especially on the West Coast.
The bottleneck in the ethanol value chain comes as production was already slowing due to broader market and policy factors. Corn use by ethanol mills dropped 4 percent in Janua...
What You Need to Know Today: After a period of limited activity, USDA reported a sizeable 613 KMT in soybean export sales, including 330 KMT to China and 283 KMT to unknown destinations, potentially also China. The purchases represent a meaningful pickup in demand and bring China closer to ful...
Key Takeaways: Consumer spending is a key driver of the U.S. economy, and the latest retail sales data indicate that spending remains robust despite inflation. In September, total retail and food service sales rose more than 6 percent year-over-year, with food service spending up 7 percent and...
The Trump import plan for 300,000 MT of beef supplies used for ground beef, i.e., lean trim, from September through November has, according to Secretary Brooke Rollins, brought some relief to beef prices. The Executive Order states that the Secretary of Agriculture will analyze and review the m...
