11.22.2024
Biodiesel margins rise, but window of opportunity limited
Biodiesel margins continued to rise during the week to Friday November 22. The bean oil/heating oil (BOHO) spread boosted margins by falling to its lowest level since August 27.
Organic Corn trading activity has slowed as most consumers have booked bushels through the end of Q1. There is light activity in the spot market with bids near $7.25 and offers at $8.0. The carry for Q2 has edged back to the $0.10 level. NON-GMO yellow #2 CIF remained steady at $0.10 premium over conventional the balance of Q4, and Q1.
Corn board futures prices have bounced back up to the top of an 8-week range, as hedge fund traders added to short positions and reduced long position in futures and options. Per the most recent commitment of trader’s report released for the date November 29, 2016, managed money, that is short futures and options, outnumber managed money that is long by approximately, 70K contracts up from 60K contracts, 1-week ago.
Mid-west organic soy bean trading activity is slower for December and Q1. Prices have dropped to the $16.50 levels driven by declines in bean meal prices. Import activity for bean meal have pushed mid-west prices down to the low $700’s, driving down the price of organic beans. The carry for the second quarter is flat. NON-GMO soybean CIF for November and December delivery are trading $0.10 – $0.30 above cash.
The growth in the organic space is for proteins, which is driving feed demand. The Agricultural Marketing Service recently reported that organic whole milk utilization for October totaled 14.99 million pounds, up 18.1% from October 2015.
Soy bean oil prices continues to break out on relatively solid volume. The next level of target resistance on the futures contract is seen near the April 2014 highs at 41.15 cents per pound.
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