EIA Press Release on Ethanol Price Spike

APRIL 3, 2014

Rail congestion, cold weather raise ethanol spot prices

Source: U.S. Energy Information Administration based on Oil Price Information Service (ethanol prices) and Thomson Reuters (RBOB prices).
Note: RBOB is reformulated blendstock for oxygenate blending gasoline, a motor gasoline blending component intended for blending oxygenates to produce finished reformulated gasoline.

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Ethanol spot prices have increased steadily since early February. By late March, New York Harbor (NYH) spot ethanol prices exceeded prices for RBOB (the petroleum component of gasoline) by more than $1 per gallon. Ethanol spot prices in Chicago and Gulf Coast markets also rose above NYH RBOB prices.

USDA Quarterly Hogs & Pigs Report - March 28, 2014

USDA has released the March 2014 Quarterly Hogs & Pigs report. It, by most accounts, shows more inventory than the trade expected. However, the figures reported do show an impact from PED-V. This impact is, simply put, not as dramatic as the price rise has been in lean hog futures. The futures are still looking forward to what most expect to be a short market ready supply of hogs in April, May, June, and July. The following is excerpted from USDA's March 28, 2014 Quarterly Hogs & Pigs report.

Cost to Produce Corn and Soybeans in Illinois-2013

In 2013, the total of all economic costs per acre for growing corn in Illinois averaged $1,033 in the northern section, $966 in the central section for farmland with "high" soil ratings, $951 in the central section for farmland with "low" soil ratings, and $872 in the southern section. Soybean costs per acre were $727, $715, $673 and $631, respectively (see Table 1). Costs were lower in southern Illinois primarily because of lower land costs. The total of all economic costs per bushel in the different sections of the state ranged from $4.90 to $5.20 for corn and from $12.32 to $12.88 for soybeans. Variations in this cost were related to weather, yields, and land quality.

Reports Continue to Support Corn & Soybean Prices

March is one of four months that contain an unusually large number of USDA reports. These, as you'll hear from University of Illinois Ag Economist Darrel Good, reflect supply and demand conditions for corn and soybeans.