In its December Short-Term Energy Outlook (STEO), EIA expects that average heating oil expenditures by households that use oil as their primary heating fuel during the 2014-15 winter will be 27% ($632) below last winter's expenditures.
By John F. Grimes, Ohio State University Extension
The holiday season is upon us as Christmas and New Years are rapidly approaching. While many of us can get caught up in holiday get-togethers and shopping for a perfect gift for that special someone, it is important that we remember the real reason for the Christmas and celebrate it in a manner appropriate for your family and beliefs.
Renewed economic optimism is boosting most markets. Concern about the global economic & political situation and underlying demand has weighed on corn futures lately. However, yellow grain prices rallied in early trading as the energy and equity sectors led markets higher. Surging wheat futures likely contributed to the corn gains. March corn futures rallied 5.25 cents at $4.135/bushel Wednesday night, while July added 5.25 to $4.285.
Santa Claus won’t come for another week but cattle feeders received an early lump of coal as feedlot margins fell to negative $32.76 per head the week ending December 13, according to the latest Sterling Profit Tracker. This is the second-straight week of huge losses for cattle feeders, with feedlot margins dropping nearly $78 since early in the month. What’s more, since this time last month, feedlot margins have taken a $263.99 per head swing from the $231.23 per head profit at this time last month.
Corn futures stabilized Wednesday morning. Despite current concerns about the global economic & political situation, corn futures are pretty stable. News that China is lifting its ban on Syngenta’s Viptera GMO corn is probably providing persistent support, since their ban greatly diminished U.S. corn & DDG exports early this year. The weekly EIA report looked supportive of ethanol industry demand. March corn futures inched 0.5 cent lower to $4.055/bushel late Wednesday morning, while July lost 0.5 to $4.205.
China news probably supported corn Tuesday morning. Corn futures decline in concert with financial markets Monday night as the diving Russian ruble and depressed financial markets reflected growing concern about a global recession. However, early morning confirmation that China is lifting its ban on Syngenta’s Viptera GMO corn sparked fresh optimism about U.S. export prospects, thereby limiting CBOT losses. March corn futures slid 2.0 cents to $4.065/bushel late Tuesday morning, while July dipped 1.75 to $4.2375.
By Matthew A. Diersen, South Dakota State University
Heading into the New Year is a good time to think about price and basis levels. The markets currently reflect steep inversions as cash prices for live and feeder cattle are higher than their respective futures prices.