- Trump Pushes Big Corn and Big Oil to Break Biofuels Deadlock
U.S. President Donald Trump urged representatives from the rival oil and corn industries on Thursday to break a deadlock in talks over the future of the nation’s biofuels policy by accepting a deal involving reforms sought by both sides. Trump has arranged a series of talks between Big Corn and Big Oil since late last year amid rising concern in the White House over the U.S. Renewable Fuel Standard (RFS), a law requiring refiners to mix biofuels such as corn-based ethanol into their fuel. The decade-old policy was intended to help farmers and reduce petroleum imports but has increasingly divided farmers and energy companies – two of Trump’s most important constituencies. Refining company Philadelphia Energy Solutions LLC in the key electoral state of Pennsylvania in January blamed the RFS for its bankruptcy.
- US soybean industry should say thank you to Argentine peers
US soybean farmers should say a double thank you to Argentina. Drought in the South American country has already ensured far higher prices of soybeans (and particularly soymeal of which Argentina is the top exporter), as importers are forced to compete harder for what supplies are available. The US, where Chicago soybean futures are up 8% over the past month, is the second ranked exporter of the oilseed, after Brazil. Now, Argentina’s woes look likely to protect the US from the threat of stiff penalties on its soybean exports.
Wheat gave back all of its gains from yesterday and Corn finished the day lower as well. Soybean was able to inch out a small gain of 2 cents for the May contract. There was sizeable selling ahead of the weekend give the potential of rainfall over the ten-day forecast for Argentina. The worsening Argentine crops have allowed Soybeans to hold up dramatically well in the US futures markets despite the large sell-off in meal. The weaker tone that was seen today on the broader markets weighed on the grains as well going into the weekend. For traders there was too much uncertainty going into a weekend.
Despite it weaker tone to start their trading today and yesterday, Crude Oil was able to show some resilience recovering most of its losses on both day. Crude was able to finish in positive territory today.