Turnaround in Ethanol Margins
Ethanol margins have been improving rapidly, which may be a bit more bullish the longer term corn outlook. Here’s Standard Grain’s Joe Vaclavik.
Vaclavik… “We've seen a pretty substantial improvement in ethanol margins from the lows that were posted in April. On average, and this is according to Reuters calculations, margins in the central corn belt were negative to the tune of 20 or 22 cents per gallon back in early to mid April and are now positive by 10 to 15 cents a gallon. So we've seen a big swing there and ethanol production still has a long ways to go till we get back to a normal state, even after six consecutive weeks of improvement. But the incentive may be growing for, uh, ethanol producers in the United States to increase production.”
July Corn closed down a quarter cent on the day to $3.29.
In other markets:
Chicago July Wheat futures yesterday closed down $0.08 ½ on Russia resuming exports to $4.96.
Kansas City Hard Red Winter Wheat down $0.07 ½ to $4.38 ¼.
Portland prices for soft white wheat of ordinary protein unchanged at $5.85 to $6.00.
Dark Northern Spring wheat steady as well ranging from $6.25 to $6.65 for 14% protein.
Live Cattle futures were up $0.77 ½ on the August board to $96.77 ½. Feeder Cattle for August up $1.70 to $132.87 ½.
Class III milk yesterday up another $0.15 to $19.42.