Headlines
Wheat sales disappoint. Corn and soybean sales within trade expectations.
Barge rates continue to spike due to high water. Ethanol production declines week over week.
Weekly Ethanol Production Drops
Weekly ethanol production declined 25,000 barrels per day to 1.01 million bpd. TW ethanol production was 1.6% above LY production during the same week. Weekly ethanol stocks were also lower by 502,000 barrels to 21.34 million bbls. Ethanol stocks are 7.3% below LY during the same week and have dropped 123 million gallons in the last five weeks which is the largest 5-week decline on record. Ethanol margins are still positive and driving season is nearing which bodes well for steady production in the coming weeks. Assistant Administrator to the EPA said that the EPA is working on a rule waiver for gasoline blended with 15% ethanol. However, the agency has not decided on next steps.
Weekly Export Sales
Wheat recorded a net reduction of 66,900 metric tons which was a marketing year low for the grain. Corn and soybean sales were within trade expectations. Corn sales were just 4% below the 4-week avg while soybean sales was 12% over the 4-week avg.
|
Actual |
Estimated |
|
|
Wheat |
-66,900 |
100-350 |
|
Corn |
1,091 |
700-1,200 |
|
Soybeans |
1,040 |
900-1,400 |
Logistical Slowdowns Continue Along The Rivers
Barge rates along the Illinois, Mississippi and Ohio river continue to climb to unseasonably high levels. Barge rates have spiked due to high water safety protocols causing a lack of turnaround time. The Ohio River and Lower Miss. River have been at flood stage since March. Transit times between St. Louis to New Orleans have increased 5 to 7 days. With weather forecasts calling for above average precip in the Ohio river valley, the river may stay at flood levels until mid May.
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