This week, big news came out of Washington D.C. regarding the Renewable Fuels Standard (RFS) and Renewable Identification Numbers (RINs).
President Trump will allow E15 to be sold all year long, and RINs won’t be capped. This news is overshadowing another big story in ethanol: crude oil prices.
Oil prices are at their highest levels in 3.5 years, which could cause demand for ethanol to increase.
From both technical and fundamental views, Naomi Blohm, senior market advisor with Stewart-Peterson, thinks the crude market will continue to grow and could reach $80 this summer.
For now, she said the market is well-supported, which will be favorable to corn markets.
Sue Martin, president and founder of Ag & Investment Services, Inc., believes ethanol will be priced cheaper as we’re approaching the peak time of gasoline usage.
Stocks are lowering and demand is picking up, which would be positive news for prices.
“It’s a win-win story, it’s just how we get there,” said Martin on U.S. Farm Report.
But how good of a story is it? Blohm is looking for corn to hit around $4.50 per bushel this summer, and higher if major weather issues hit. For Martin, there’s enough of a story with ocrn where it could reach $5 per bushel this year.
Hear Martin and Blohm discuss how Venezuala and Iran are playing a role in increasing ethanol demand on Markets Now on U.S. Farm Report above.