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US Biofuels Update: Ethanol Dips Amid Production Slowdown, Soybean Pressured by Slowed Harvest

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Ethanol futures fell Tuesday on seasonal production dips ahead of the US corn harvest and scheduled plant repairs, while soybean oil stayed pressured as wet harvest conditions left western Corn Belt crushers short on soybeans.

The Nymex October ethanol futures contract settled 0.23% lower on Tuesday at $2.13 per gallon.

The Chicago Board of Trade October soybean oil futures contract settled 0.27% lower at 67.19 cents per pound on Wednesday, while the CBOT November soybean futures contract closed 0.60% lower at $13.17 1/2 per bushel.

US weekly ethanol production dropped compared with a week ago, according to the US Energy Information Administration report on Wednesday.

For the week ending Sept. 18, US ethanol production averaged 1.03 million barrels per day, down from 1.10 million b/d the prior week and roughly unchanged from 1.02 million b/d a year earlier. The four-week average was 1.08 million b/d, above 1.07 million b/d last year.

What else is happening in Commodities?

Commodities

SEBI Settles With Five Adani Group Firms Over Disclosure Violations

The Securities and Exchange Board of India (SEBI) has settled adjudication proceedings against five Adani Group companies, which paid a total of 15.1 million Indian rupees for alleged violations related to the disclosure of related-party transactions and audit and limited review reports.The settlement follows an examination by the Indian capital markets regulator into allegations and corporate governance issues highlighted in a January 2023 report of Hindenburg Research, including possible violations of listing regulations and the erstwhile listing agreement.Under the terms of the settlement, Adani Enterprises (NSE:ADANIENT, BOM:512599) paid 7.6 million rupees, while Adani Green Energy (NSE:ADANIGREEN, BOM:541450) paid 4.6 million rupees, and Adani Total Gas (NSE:ATGL, BOM:542066), AWL Agri Business (NSE:AWL, BOM:543458) and Adani Energy Solutions (NSE:ADANIENSOL, BOM:539254) paid 975,000 rupees each.The companies settled the cases without admitting or denying the findings of fact or conclusions of law.

BOM:512599BOM:539254BOM:541450BOM:542066BOM:543458NSE:ADANIENSOLNSE:ADANIENTNSE:ADANIGREENNSE:ATGLNSE:AWL
Commodities

US Power Update: Prices Swing as PJM Hits $85.08/MWh Intraday High

US electricity markets saw significant price swings, with locational marginal prices varying widely across regions as power demand shifted.ISO New England led the markets at 5 p.m. ET with a locational marginal price of $34.71 per megawatt-hour, compared with $22.39/MWh for Midcontinent Independent System Operator, which posted the lowest price at that hour.For intraday peaks, PJM Interconnection reached $85.08/MWh at 8:15 a.m. ET, while ISONE recorded the lowest LMP in the negative territory at -$0.45/MWh at 11 a.m. ET.The National Weather Service's Climate Prediction Center forecasts above-normal temperatures across most of the US from Sept. 30-Oct. 6, with near-normal readings in parts of the West.

Commodities

US Crude Oil Inventories Rise, API Says

Data from the American Petroleum Institute revealed Tuesday that US crude oil inventories increased by1.79 million barrels in the week ended Sept. 23, following a 7.14-mmbbl build the previous week, and compared with analysts' estimate of a 500,000-bbl decline, according to a Bloomberg-compiled survey.The oil market now awaits the US Energy Information Administration's petroleum inventory report, scheduled for release on Wednesday.