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 in the Eastern portion of the United States has picked up slightly, with the impending harvest taking shape. Prices in Pennsylvania topped out at $9.75 per bushel, placing Midwest organic corn prices near $7.75 per bushel. Mounting pressure from CBOT board prices should weigh on organic prices, as robust yields and a strong carryover are likely to keep prices capped near $8. Hedge fund traders appear to be lining up on the short side, as they continued to add to short positions in futures and options for conventional corn, according to the latest Commitment of Traders report released for the date ending August 23rd, 2016.
Midwest organic soybeans were steady near $17.50-18.25 range. Beans are also forecast to experience record yields, offsetting large U.S. exports to China, which have kept conventional prices elevated. Wheat trading has been active, as traders look to declining prices as an opportunity to purchase wheat at 10-year lows. The strengthening U.S. dollar also continues to generate a headwind for grains, as most are quoted in dollars, making prices less attractive outside of the U.S., as the dollar gains in value.
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