{"id":4566,"date":"2019-01-09T11:28:56","date_gmt":"2019-01-09T16:28:56","guid":{"rendered":"https:\/\/www.fundamentalanalytics.com\/?p=4566"},"modified":"2019-01-09T11:28:57","modified_gmt":"2019-01-09T16:28:57","slug":"commodity-market-update-january-8-2018","status":"publish","type":"post","link":"https:\/\/www.fundamentalanalytics.com\/pt\/commodity-market-update-january-8-2018\/","title":{"rendered":"Commodity Market Update January 8, 2018"},"content":{"rendered":"<p><strong>Energia<\/strong><\/p>\n\n\n\n<p>January is the start of refineries turnaround, when parts of\nthe refineries are shut down for maintenance and preparation for the summer\ndriving season. As shown by Chart 1, there is a drop in Crude Runs in the\nrefineries through January and into February. Correspondingly, there is a drop\nin the production of gasoline during this period (Chart 2) as demand for\ngasoline is lower in January (Chart 3). The lower demand can pressure prices in\nboth the refined products and crude oil. <\/p>\n\n\n\n<p><strong>Chart 1<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img fetchpriority=\"high\" decoding=\"async\" width=\"974\" height=\"710\" src=\"https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-1.png\" alt=\"\" class=\"wp-image-4567\" srcset=\"https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-1.png 974w, https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-1-300x219.png 300w, https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-1-768x560.png 768w\" sizes=\"(max-width: 974px) 100vw, 974px\" \/><\/figure>\n\n\n\n<p><strong>Chart 2<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"972\" height=\"720\" src=\"https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-2.png\" alt=\"\" class=\"wp-image-4568\" srcset=\"https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-2.png 972w, https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-2-300x222.png 300w, https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-2-768x569.png 768w\" sizes=\"(max-width: 972px) 100vw, 972px\" \/><\/figure>\n\n\n\n<p><strong>Chart 3<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"972\" height=\"720\" src=\"https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-3.png\" alt=\"\" class=\"wp-image-4569\" srcset=\"https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-3.png 972w, https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-3-300x222.png 300w, https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-3-768x569.png 768w\" sizes=\"(max-width: 972px) 100vw, 972px\" \/><\/figure>\n\n\n\n<p><strong>Grains<\/strong><\/p>\n\n\n\n<p>Corn is the raw material in the production of biofuel\nethanol in the US. About 40% of the US corn crop is used in the production of\nethanol. Corn prices rebounded from their lows last September, but ethanol\nprices have continued to weaken (Chart 4). <\/p>\n\n\n\n<p>In fact, ethanol prices in equivalent bushel prices (1\nbushel of corn produces 2.8 gallons of ethanol) are lower than corn prices.\nChart 5 plots corn prices (black line) and equivalent ethanol prices (red\nline). When the black corn line is above the red ethanol line the spread, or\nmargin, is negative.<\/p>\n\n\n\n<p>Chart 6 is a year-on-year overlay of the spread between\nethanol and corn. The black line, the 2019 spread, is at record lows around -20\ncents. Ethanol refiners are currently running at a loss. Ethanol inventories are\nat record high levels for this time of the year, so supply is plentiful (Chart\n7). Consequently, ethanol refiners have been cutting production (Chart 8, black\nline). For the week ending December 28, ethanol production dropped by 31,000\nbarrels per day. <\/p>\n\n\n\n<p><strong>Chart 4<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"972\" height=\"720\" src=\"https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-4.png\" alt=\"\" class=\"wp-image-4570\" srcset=\"https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-4.png 972w, https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-4-300x222.png 300w, https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-4-768x569.png 768w\" sizes=\"(max-width: 972px) 100vw, 972px\" \/><\/figure>\n\n\n\n<p><strong>Chart 5<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"972\" height=\"720\" src=\"https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-5.png\" alt=\"\" class=\"wp-image-4571\" srcset=\"https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-5.png 972w, https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-5-300x222.png 300w, https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-5-768x569.png 768w\" sizes=\"(max-width: 972px) 100vw, 972px\" \/><\/figure>\n\n\n\n<p><strong>Chart 6<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"972\" height=\"720\" src=\"https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-6.png\" alt=\"\" class=\"wp-image-4572\" srcset=\"https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-6.png 972w, https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-6-300x222.png 300w, https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-6-768x569.png 768w\" sizes=\"(max-width: 972px) 100vw, 972px\" \/><\/figure>\n\n\n\n<p><strong>Chart 7<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"972\" height=\"718\" src=\"https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-7.png\" alt=\"\" class=\"wp-image-4573\" srcset=\"https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-7.png 972w, https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-7-300x222.png 300w, https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-7-768x567.png 768w\" sizes=\"(max-width: 972px) 100vw, 972px\" \/><\/figure>\n\n\n\n<p><strong>Chart 8<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"974\" height=\"700\" src=\"https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-8.png\" alt=\"\" class=\"wp-image-4574\" srcset=\"https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-8.png 974w, https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-8-300x216.png 300w, https:\/\/www.fundamentalanalytics.com\/wp-content\/uploads\/2019\/01\/CMU-108-8-768x552.png 768w\" sizes=\"(max-width: 974px) 100vw, 974px\" \/><\/figure>","protected":false},"excerpt":{"rendered":"<p>Energy January is the start of refineries turnaround, when parts of the refineries are shut down for maintenance and preparation for the summer driving season. As shown by Chart 1, there is a drop in Crude Runs in the refineries through January and into February. Correspondingly, there is a drop in the production of gasoline [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4566","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.fundamentalanalytics.com\/pt\/wp-json\/wp\/v2\/posts\/4566","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fundamentalanalytics.com\/pt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fundamentalanalytics.com\/pt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fundamentalanalytics.com\/pt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fundamentalanalytics.com\/pt\/wp-json\/wp\/v2\/comments?post=4566"}],"version-history":[{"count":2,"href":"https:\/\/www.fundamentalanalytics.com\/pt\/wp-json\/wp\/v2\/posts\/4566\/revisions"}],"predecessor-version":[{"id":4576,"href":"https:\/\/www.fundamentalanalytics.com\/pt\/wp-json\/wp\/v2\/posts\/4566\/revisions\/4576"}],"wp:attachment":[{"href":"https:\/\/www.fundamentalanalytics.com\/pt\/wp-json\/wp\/v2\/media?parent=4566"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fundamentalanalytics.com\/pt\/wp-json\/wp\/v2\/categories?post=4566"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fundamentalanalytics.com\/pt\/wp-json\/wp\/v2\/tags?post=4566"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}