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Veteran Contributor

Floor Talk October 19

At the close:

At the close, the Dec. corn futures settled 3 3/4¢ higher at $3.57 1/2 while March futures finished 3 3/4¢ higher at $3.67 1/4 per bushel. Nov. soybean futures closed 9¢ higher at $9.81 1/2, while Jan. soybean futures closed 9 1/4¢ higher at $9.90 1/2. Dec. wheat futures finished 1/4¢ higher at $4.20 1/4. Dec. soymeal futures finished $3.00 short ton higher at $306.40. Dec. soyoil futures closed $0.33 higher at 35.40¢ per pound.  In the outside markets, the Brent crude oil market is $1.21 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 40 points higher.

 

Mike

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At mid-session:

At mid-session, the Dec. corn futures are 3¢ higher at $3.56 while March futures are 3¢  higher at $3.66 per bushel. Nov. soybean futures are 6¢ higher at $9.78, while Jan. soybean futures are 7¢ higher at $9.88. Dec. wheat futures are 1 3/4¢ lower at $4.18. Dec. soymeal futures are $0.80 short ton higher at $304.20. Dec. soyoil futures are $0.51 higher at 35.58¢ per pound.  In the outside markets, the Brent crude oil market is $1.34 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 61 points higher.

 

Mike

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At 11am:

The amount of U.S. Ethanol on-hand is dropping, according to the Renewable Fuels Association Wednesday.

 

According to EIA data analyzed by the Renewable Fuels Association, ethanol production averaged 998,000 barrels per day (b/d)—or 41.92 million gallons daily. That is up 36,000 b/d from the week before and a five-week high. The four-week average for ethanol production stood at 982,000 b/d for an annualized rate of 15.05 billion gallons.

Stocks of ethanol stood at 19.0 million barrels. That is a 1.8% decrease from last week and the lowest since November 2015.

 

What do you think?

 

 

Mike

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In early trading:

At 8:55am, the Dec. corn futures are 2 1/4¢ lower at $3.51 while March futures are 2¢ lower at $3.61 per bushel. Nov. soybean futures are 2 1/4¢ higher at $9.74, while Jan. soybean futures are 2 1/4¢ higher at $9.83. Dec. wheat futures are 4¢ lower at $4.16. Dec. soymeal futures are $0.70 short ton lower at $302.70. Dec. soyoil futures are $0.28 higher at 35.25¢ per pound.  In the outside markets, the Brent crude oil market is $0.81 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 31 points higher.

 

On Wednesday, private exporters reported to the U.S. Department of Agriculture export sales of 185,000 metric tons of soybeans for delivery to unknown destinations during the 2016/2017 marketing year.

 

Now 33.0 million bushels of soybeans have been sold, this week, and it's only Wednesday!  WoW!


The marketing year for soybeans began Sept. 1.

 

Mike

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Corn was lower and beans were little changed overnight as investors weigh strong demand against harvest pressures. Corn fell 2 cents, bean futures were unchanged, Chicago wheat lost 2 cents and Kansas City wheat fell a penny. Cooler weather has moved into much of the western and central U.S. while it's supposed to stay hot for one more day out east. 
 

Here's what happened overnight:

 

Brent Crude Oil = 1.2% higher. 
West Texas Intermediate Crude Oil = 1.3% higher. 

Dollar = down 0.1%.

Wall Street = U.S. stock futures modestly higher in overnight trading.
World Markets = Global stocks rise as oil futures up again. 

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Veteran Advisor

Re: Floor Talk October 19

The ethanol "blend wall' is crumbling, according to the Renewable Fuels Association. Here's an intersting take on how the content of gasoline is containing more and more ethanol.

 

RFA Press Release:

Gasoline supplied to the U.S. market last week contained an average of 10.4 percent ethanol, according to data released this morning by the Energy Information Administration (EIA). It was the second time in the last four weeks that the ethanol blend rate topped 10.0 percent, a level the oil industry has suggested could not be breached. Renewable Fuels Association (RFA) President and CEO Bob Dinneen said the data confirms that the so-called “blend wall” is nothing more than a fiction created by oil companies in an effort to undermine support for the Renewable Fuel Standard (RFS).

“These EIA figures show once again that the oil industry’s false blend wall narrative is not rooted in reality. This clearly shows that there’s no reason for the administration to roll back the 2017 RFS conventional biofuel blending levels required by the statute,” said Dinneen. “It also shows that supporters of legislative proposals to cap ethanol content at 9.7 percent are completely out of touch with what is really happening in the marketplace.”

EIA data show that an average of 8.798 million barrels per day (mbpd) of gasoline were supplied to the market last week. Ethanol blending averaged 0.915 mbpd, meaning gasoline contained an average of 10.4 percent ethanol. This is the highest weekly blend rate on record, topping the 10.21 percent rate seen just three weeks earlier.

The weekly data come on the heels of EIA’s October Short-term Energy Outlook, which similarly projected that gasoline consumed in 2016 will contain an average of 10.1 percent ethanol. That is up from 9.9 percent last year. In September, RFA ran ads showing that nearly half of the states in the U.S. had already blown by the 10.0 percent threshold as early as 2014."

 

Mike

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