05.17.2024
Uncertainty with 45z tax credit may affect Q1 2025 biofuel contracts
The expiring BTC provides a one dollar per gallon blenders credit up front with an additional 30 to 40 cents of credit to producers on the backend. Crimson...
As market participants begin to look at Q1 and Q2 values, organic corn prices relative to conventional prices, remain near their historical averages. The five-year spread average (OYC-CME) is $4.35, slightly above the current $4.10 spread level. Little activity in the organic corn arena has allowed the spread to edge lower as conventional corn prices have bounced around, setting the stage for a potential rally in the conventional corn space due to the high short positions reported on Friday by the CFTC.
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