Sep 10, 2020

U.S. Biofuel Waivers to be Denied

Welcome news for biofuel industry, which has not fully recovered from coronavirus

U.S. Biofuel Waivers to be Denied

  • The Environmental Protection Agency could reject as many as 67 retroactive blending waiver requests as soon as this week.
  • Federal law authorizes the EPA to grant the exemptions for small refineries that can prove hardship complying with the biofuel blending requirements.
  • The Trump administration had previously quadrupled the number of exemptions given out to refiners.
  • In January, an appeals court ruled that waivers granted to small refineries after 2010 could only be approved as extensions of pre-existing waivers.
  • Refineries filed applications with the EPA seeking retroactive waivers from the biofuel-blending requirements dating back to 2011.
  • The Trump administration has not yet decided whether to reject a separate group of 28 pending requests tied to 2019 biofuel quotas.

FBN’s Take On What It Means: Biofuel policy often divides President Trump’s political base, pitting oil refining states against those producing ethanol. This is welcome news for the biofuel industry, which has not fully recovered from the hit taken due to the coronavirus. The dismissal of refiner exemptions will be supportive of ethanol and ultimately corn demand.

Learn%20More%20Now!

Argentina Crop Outlook

  • Rosario grain exchange forecast Argentina's 2020/21 soybean at 50 million tonnes compared to 50.7 million last year.
  • USDA forecast Argentina’s soybean production at 49.7 million tonnes in August.
  • Planted area is projected to increase 0.6% versus a year earlier to 17.3 million hectares (42.75 million acres).
  • Corn production for 2020/21 is forecast at 48 million tons, down from 51 million last year and below the USDA’s projected 50 million tonnes.
  • The exchange forecast wheat production at 18 million tonnes, at the lower end of its previous 18-19 million tonnes projection.

FBN’s Take On What It Means: Argentina has had a drier than normal spring which has hurt the condition of wheat and lowered expectations for production. Recent rains have helped improve prospects for corn planting later this month. Comparative prices are encouraging corn planting even though the weather has not been ideal. USDA will update their forecast of world supply and demand in their report Friday.

FBN Market Advisory services are offered by FBN BR LLC, dba FBN Brokerage, FBN BR and FBN Market Advisory (NFA ID: 0508695)

The risk of trading futures and options can be substantial and may not be suitable for all investors. Past performance is not necessarily indicative of future results.

This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to, persons residing in Australia and Canada.

Kevin McNew

Recently Added to Buyer's Guide

Model FA Belt Cleaner

  • Multi-bladed spring arm conveyor belt cleaner
  • Available with 7 different blade materials ranging from urethane to stainless steel to tungsten carbide

3-Rolls Assembly Upgrade

  • For Paladin 2000 automatic roller adjustment system
  • Provides adjustable spacing between die and rolls to allow producers to set perfect distance for different recipes in one pellet mill

Pneumatic Conveying System

  • Pneumatic dense phase conveying is dust tight
  • Enables low-abrasion transport as well as complete emptying of the conveyor pipe

FSU101 Bag Sealer

  • Seals up to 25 bags/minute depending on size, weight and type of high barrier material
  • Resistance-type heat seal bars with dual temperature controls

I/O Interface

  • Interface forms a smart and universal actuator
  • Offers endless modifications to give full control of exact functionalities

Magazine

Marketwatch: May, 28

US Corn Price Idx: ZCPAUS.CM

open: 7.6273
high: 7.741
low: 7.6223
close: 7.7113

US Soybean Price Idx: ZSPAUS.CM

open: 16.9414
high: 17.1044
low: 16.9237
close: 16.9795

US Hard Red Winter Wheat Price Idx: KEPAUS.CM

open: 11.718
high: 11.9549
low: 11.658
close: 11.7977

US Soft Red Winter Wheat Price Idx: ZWPAUS.CM

open: 10.8628
high: 11.0906
low: 10.8128
close: 10.9646