EPA lays out new Renewable Fuels Standard 5/05/09

Published on: 17:17PM May 05, 2009
May 09 Corn
398 3/4
+ 3/4
July 09 Corn
404 1/4
- 1 1/4
May 09 Beans
1115 1/2
+ 1/4
July 09 Beans
1101 1/4
- 2 1/4
May 09 Wheat
+ 5 1/2
July 09 Wheat
552 1/4
+ 1 1/4
May 09 Meal
+ 0.9
May 09 Oil
- 0.25

The grains closed mixed once again. Corn traded on both sides of the market today. Weather forecasts continue to vary throughout the day on the amounts of precipitation expected to fall in the next week to ten days. With the eastern belt falling behind average pace, the amount of precipitation that falls over the next 2 weeks will be very important. Some planting has been taking place this week in the eastern belt. If the rains turn out to be insignificant this week, these areas should be able to continue planting. However, another round of 1-2” showers would setback many of these areas once again. With weather forecasts changing every 12 hours, we should see the corn market remain choppy until we see how much rain actually falls this week/weekend. The EPA proposed a new alternative-fuel standard today. The proposed rule outlines two emission scenarios for a range of bio-fuels and production methods. One scenario favors the use of corn-based ethanol, and the other would prohibit all but one corn-ethanol production process. The scenario that is chosen will decide the future of corn-ethanol. If the first scenario is chosen, corn-ethanol should continue to expand. If the second scenario is chosen, corn-ethanol production should peak shortly. These two scenarios will likely be debated over for some time before we see any decisions. You can follow the link below for additional information:

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