Weekly ethanol usage is on the lower side despite high gas prices

For the week ending Jul. 15, U.S. weekly ethanol blending and refining use was unchanged from last week, and use has been on low side compared to last season. Gasoline averaged around $4.77 per gallon in early July, up 53 percent YOY. Despite high [...]

Petroleum Reserve drained further as Middle East visit ends

At June’s end, the U.S. Strategic Petroleum Reserve (SPR) dropped to its lowest level since the mid-1980s, a 35-year low. The Biden administration is continuing to use SPR withdrawals to bolster supply and try to bring reduce fuel prices and the oft-mentioned pain at [...]

Freeport LNG fire shifts momentum of natural gas market

Although news of an explosion and fire in a Freeport liquified natural gas (LNG) loading terminal off the coast of Texas would initially appear bullish, in-depth analysis would suggest that the event has instead shifted the momentum of the domestic natural gas market. The [...]

Crude oil over $120 per barrel as China slowly reopens

Saudi state-run oil company Aramco raised prices to both European and Asian customers this month and signaled that prices could rise further as China slowly relaxes strict COVID lockdowns and reopens its economy, raising its oil demand. New-contract Arab light crude oil prices were [...]

Barge transport costs ease, but truck rates remain dizzying

USDA’s recent transportation cost index update shows barge freight rates for grain are down by almost 50 percent from sky-high values seen in March, while grain trucking costs are still close to May’s record level. Rail costs are also around the May average and [...]

Hurricane season starts this week

The North Atlantic hurricane season officially begins today, Jun. 1, and the National Oceanic and Atmospheric Administration (NOAA) has released its projection for the season. It echoes a previous forecast from researchers at Colorado State, calling for an above-average season for both the number [...]

Update on world food trade policies & export bans

Following production and shipment exports stemming from the COVID-19 pandemic, some countries adopted restrictions or additional duties on exports of some food commodities. In 2022, poor weather and crops and the fallout of the Russian invasion of Ukraine have now prompted additional export bans, [...]

Surging greenback could help press pause on dollar-denominated commodities

Interest rates were increased by 50 basis points in an early-May Fed meeting, and there was strong insinuation the move would be followed by another hike of 50 points at the June meeting and perhaps several more later this year. Higher yield is attracting [...]

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