President Trump called a meeting with key senators and Cabinet officials to discuss potential changes to the biofuels policy, which is coming under increasing pressure after a Pennsylvania refiner blamed the regulation for its bankruptcy. The meeting comes as the Oil industry and Corn lobby which are both powerful forces in Washington clash over the future of the Renewable Fuel Standard (RFS), a decade old regulation that requires refiners to cover the cost of mixing biofuels such as Corn-based Ethanol in their fuel. This news story reported by Jarrett Renshaw with Thomson Reuters. The USDA also projects a drop in Corn production to 14.390 billion bushels from 14.604 previously. In the overnight electronic session the March Corn is currently trading at 367 ¾ which is 1 ½ of a cent higher. The trading range has been 368 ¼ to 366 ½.
On the Ethanol front the April contract is currently trading at 1.488, which is .004 higher. The trading range has been 1.495 to 1.488. The market is currently showing 2 bids @ 1.487 and 1 offer @ 1.495 with 10 contracts traded and Open Interest at 982 contracts.
On the Crude Oil front the market is easing on prices with expectations of builds in the API Energy Stocks data tomorrow. In the overnight electronic session the April Crude Oil is currently trading at 6325, which is 30 points lower. The trading range has been 6390 to 6323. We could see further profit taking.
On the Natural Gas front the March contract expires today and new weather reports of a cold March looming has prices higher on this oversold market. In the overnight electronic session the April contract is currently trading at 2.697, which is 4 cents higher. The trading range has been 2.723 to 2.670.
