Futures-based US ethanol margins remains deeply negative. Cash margins are relatively better when accounting for the price of corn oil & DDGs. Yet, cash margins continue to imply a shuttering of plants during the remainder of the spring. Weekly US ethanol grind will be falling rapidly and annual corn use forecasts are now centered on…
AgResource’s research suggest the USDA and CONAB’s total Brazilian corn production estimates are slightly overstated. This is due to lingering dryness across the state of Parana. Parana is the second largest safrinha producing state in Brazil but also will account for just 16% of total safrinha corn area in 2019/20. Yet, this is an all-time…
The March Hogs and Pigs report is viewed as neutral to slightly bearish relative to trade expectations. The report marked the 6th consecutive year that the US hog herd was at a new record level, with the total market hog inventory coming in slightly above trade expectations. Hog producers farrowed a record 3.158 Mil sows…
The forecast for US 2nd quarter pork production is maintained along with 3rd quarter production of 7,015 Mil Lbs. If realized this would be a 5% increase over last year, the 6th consecutive year of expansion in Jul-August production. Compared to 10 years ago, production will have risen 30% and be 52% more than in…
The US & global biofuel landscape is worsening. AgResource Research fears a sizable cut to US industrial corn use is in the offing. The spot futures-based ethanol production sits at a negative $.80/Gal vs. negative $.45/Gal last week. And RBOB/CBOB gasoline prices continue to fall. Spot RBOB tested $.38/Gal before mounting a modest recovering. Spot…
