Ethanol cutbacks keep pressure on corn prices
Corn futures continue to flirt with contract lows as ethanol producers curb production amid tumbling oil prices.
May corn futures fell by 2¢/bushel today toclose at $3.42/bushel, about 2pc above the contract low reached on 18 March, and they are poised for further price headwinds as demand from ethanol producers wanes.
Traders today said ethanol producers have curtailed output to mitigate losses stemming from plunging oil prices. Ethanol producer margins fell further into the red after oil prices plunged following the breakdown in the Opec+ supply negotiations earlier this month.
Depreciating futures extended beyond May and dragged December-crop corn prices to a contract low last week, too. December futures today closed at $3.63/bushel, up by 1pc from the contract low on 18 May.
Sinking new-crop corn futures against firmer soybean values could impact this season's crop mixes for farmers still weighing options.
The soybean-to-corn ratio inched up to 2.39 as corn prices fell and soybeans for November delivery rose, fueled by talks of delays at South American ports. The port of Santos in Brazil – the primary port for the country's soybean exports – continues to maintain normal operations by deadline.
A ratio above 2.35 favors more soybean acres, but the metric is a gauge of sentiment and does not quantify area.
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TUI Cruises receives methanol-ready ship
TUI Cruises receives methanol-ready ship
New York, 18 April (Argus) — Cruise ship company TUI Cruises took delivery of a methanol-ready cruise ship which will start operations at the end of June. Methanol-ready vessels allow ship owners to easily retrofit their vessels to burning methanol in the future. The 7,900t deadweight Mein Schiff 7 will operate in the North Sea, the Baltic Sea, along the European Atlantic coast and in the Mediterranean and run on marine gasoil (MGO). It was built by Finland's Meyer Turku shipyard. In January, TUI Cruises signed a memorandum of understanding with trading company Mabanaft for future supply of green methanol. Mabanaft would cover TUI's methanol needs in northern Germany, and gradually add other European locations. Grey methanol was pegged at $717/t MGO equivalent and biomethanol at $2,279/t MGOe average from 1-18 April in Amsterdam-Rotterdam-Antwerp. About 0.9 times and 2.9 times, respectively, the price of MGO, Argus assessments showed. TUI Cruises is a joint venture between the German tourism company TUI AG and US-based cruise ship company Royal Caribbean. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Canada furthers investment in GHG reductions
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Korea’s Hyundai starts operations at biodiesel plant
Korea’s Hyundai starts operations at biodiesel plant
Singapore, 18 April (Argus) — South Korean refiner Hyundai Oilbank has started commercial operations at its 130,000 t/yr biodiesel plant at Daesan as of 17 April, according to a source from the company. The plant is currently being fed with palm oil fatty acid distillates (Pfad). Most of the produced biodiesel will likely be kept to meet domestic demand, said other South Korea-based market sources. Hyundai had been trialing feedstocks at the plant since last December, which include Pfad, used cooking oil (UCO) and soybean oil. It previously entered an agreement with food manufacturer Lotte Confectionery in 2022, which involved Lotte supplying UCO as feedstock to the plant. The refiner said earlier this year that it is also considering co-processing biofuels at its 520,000 b/d Daesan refinery. It has plans for another 500,000 t/yr plant that can produce renewable diesel, sustainable aviation fuel and bio-naphtha, initially scheduled to come on line in the middle of the decade. But a final investment decision has yet to be reached for this plant. By Sarah Giam Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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