Highlights
It is very important to understand Friday’s price gains for corn and beans were based upon production cuts, not demand increases. While there will be increases in demand in the coming months, the production cuts for 2024 U.S. crops are behind us and there will be no more production adjustments until possibly some minor adjustment in September, after the marketing year is over.
Brazilian grain trader, Eduardo Vanin, Friday evening reported exporters were booking April and May soybean shipments. The basis in the interior and FOB prices felt the weight of farmer selling, the largest in 3 months. Eduardo wrote, “We are going to see a weaker basis next week.”
On Friday, the U.S. government released short-term guidance on how companies can secure clean fuel tax credits under the Inflation Reduction Act, but fell short of finalizing the program's key details.
Biofuels groups hope the clean fuel guidance will provide a pathway for corn-based ethanol to be used as a feedstock for sustainable aviation fuel (SAF).