Headlines:

  • Iowa Lawmaker Urges EPA to Speed Up Rule Expanding Ethanol Sales
    Republican Senator Chuck Grassley said on Tuesday that the U.S. Environmental Protection Agency must act quickly to allow year-round sales of higher ethanol gasoline blends if President Donald Trump aims to keep a campaign promise to corn farmers. Trump announced during a trip to Iowa this month his intention to lift the summertime ban on sales of so-called E15 gasoline to help corn growers stung by slumping prices. The EPA has since said it will finish deliberations on a proposal to lift the ban by May, a timeline the administration hopes will put the rule in place before summer. But Grassley said that was too slow. “EPA ought to speed it up. Otherwise it is going to look like the President wasn’t serious in his announcement,” he told a weekly conference call. “We don’t need a lot of bureaucratic red tape with something that has been discussed in Washington for four to five years, and discussed… specifically with EPA and face-to-face with the President for about a year,” he said. Trump’s announcement encouraged farmers eager to expand the market for corn-based ethanol, and was seen as a political victory for Trump ahead of congressional elections in November. The EPA’s ban on summer E15 sales was initially intended to reduce smog, but academic studies have concluded that the ban is ineffective at improving air quality.
  • Oil plunges as Saudis vow to produce as much as they can
    Oil fell to the lowest level since August after Saudi Arabia pledged to meet any supply shortfall that materializes from Iranian sanctions and as tumbling equities weakened sentiment. International benchmark Brent crude fell by $3.70 a barrel, down 4.6 percent, to $76.13. The contract earlier touched $75.88, its lowest level since Sept. 7. U.S. light crude ended $2.93, or 4.2 percent, to $66.43 a barrel, after earlier hitting a two-month low at $65.74. The contract posted its biggest daily loss since July 11, when it fell 5 percent. Saudi Arabia, the world’s biggest oil exporter, has boosted production to 10.7 million barrels a day and is nearing an all-time high. Saudi Energy Minister Khalid Al-Falih said OPEC and its allies are in “produce as much as you can mode.” “There are several reasons for the slide in crude oil, chief among them is it’s a risk-off day across all financial markets,” said Bob Yawger, director of the futures division at Mizuho Securities USA. “You’re seeing people flee the commodities and equities space to most likely put their money in safe haven.”

Summary:

The September import numbers for China came in at 40k metric tons corn which was down 83.4% from last year this time. They imported 90k metric tons of sorghumand that too was significantly lower than last year’s numbers dropping 76.9%. The Corn Crop Progress condition rating wasunchanged at 68% goodtoexcellent.AgRural said Brazil’sfirst season corn planting is 48% complete versus the 45% average. The Argentine corn planting was reported at 32.6% complete. Weekly corn export inspections totaled 949k metric tons edging the low side of estimatesthat ranged  from 900kto 1.2Mmetric tons. The Soybean Crop Condition ratingswere unchanged at 66% good to excellent. The soybean harvest was reported at 53% complete versustrade estimates of 52%and below the 69% average pace.The weekly soybean export inspections came in at 1.149M metric tons which was close to the high end of trade estimates that ranged from900kto 1.2Mmetric tons. There were no soybean shipments to Chinaand 5.9 million bushels sold to Argentina.The weekly wheat export inspections totaled 385k metric tons.