Market News Blog

Guess which biodiesel feedstock set a record use
percentage in July?

Mar-24 #11 world raw sugar traded sideways in recent sessions, testing its late-September ten-month high of 23.48 cents on Friday, Oct. 4, but instead falling to end the week at 23.01, above psychological support. Further support may be near 22.35, 22.15, and 21.70, with resistance near 23.25, 24.00, and 24.50. The May-25 contract closed at 21.27 on a down session Friday, below its own recent high of 21.74; resistance and support may be below 21.90 and above 21.00, respectively. For both contracts, RSI is bearish, MACD is neutral or nearly neutral, and the stochastic is overbought.

The corn market rallied briefly then retreated after the Sep. 30 Grain Stocks report showed lower-than-expected 2023/24 corn ending stocks. We expect an adjustment to corn use for feed for the previous marketing year, but more attention is focused on 2024/25 at this point: the size of the U.S. crop being harvested (will USDA increase corn yield in the October WASDE) and the impact of hot, dry conditions in Brazil and Argentina that are delaying planting of corn and early soybeans in some regions.

EIA’s biodiesel/renewable diesel feedstock numbers for July showed record use of canola oil and strong use of other major fats and oils. About 75 percent of July’s canola oil volume went toward producing renewable diesel, the highest share to date, as well as about 44 percent of the month’s soybean oil use. Fuel S&D data for June (the most recent information available from EIA) show RD production (7.02 million barrels) and consumption (7.81 million barrels) both set records.

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