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Morning Market Review for May 10, 2021 farmprogress.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from farmprogress.com Daily Mail and Mail on Sunday newspapers.
Morning Market Review for May 7, 2021 farmprogress.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from farmprogress.com Daily Mail and Mail on Sunday newspapers.
May 6, 2021 In late April, 2020, as the pandemic descended on the US, demand for gasoline crashed to historic lows. Archer Daniels Midland (ADM), the agricultural commodities giant, decided to idle two of the country’s biggest plants producing corn-based ethanol mixed into oil-based fuels to reduce their carbon intensity. ADM’s chief biofuels rival, POET Inc., also shut down several plants. Overall, the bio-fuel accounts for about 10% of every gallon of gas pumped in the US. A year later, American drivers are back at the gas pump, and ethanol plants are back online. ADM re-opened its plants in early April; POET’s plants re-opened in August 2020 but only hit full production capacity in April. Then, just as ethanol’s road ahead was beginning to look clear, another unanticipated obstacle emerged: the spot price of its key ingredient corn surged to its highest levels in a decade in May. ....
Losses underpinned by tightening global supplies, lingering drought conditions Corn down 2-4 Wheat down 2-10 cents Corn As April comes to a close, corn futures are slated to end the month up 15% - the largest monthly gain for the contract in over two years. As the May 2021 contract expires, traders are expecting deliveries on the first notice day to be minimal against the backdrop of tightening global supplies and strong cash demand. Corn prices moved $0.02-$0.03/bushel lower this morning as a sunny weekend forecast encourages planting and germination rates. The market is tightening. Demand is strong and the market is still trying to figure out production in South America and the U.S, said a Melbourne-based grains trader told Reuters overnight. ....