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...
Key Market Insights The broad market is locked in on this week’s Trump-Xi meeting in Beijing, but this is no longer just a trade summit. Increasingly, the meeting is becoming tied directly to Iran, energy security, and the growing global economic fallout from disruptions through the Strai...
