U.S. crude flows abroad

Register
Jun 30, 2014

 

News that the Obama administration is paving the way for an increase in oil exports for first time in nearly forty years provides more evidence of high production and ample supplies in North America. The complicated move, involving the Commerce Department and many technicalities may be more symbolic at this stage than an overall lifting of export bans, but has been heralded by some as a fundamental change in the US oil market policy.

Easing of tensions in Iraq, increased output from Libya, and lackluster domestic economic data contributed to lower prices for crude oil and its products this week. The peak of demand for gasoline is typically around the upcoming 4th of July holiday, while demand for diesel fuel may ebb as builders and farmers have likely already purchased fuel to meet their spring and early summer needs.

By midday Friday, August crude oil was trading slightly lower on the week at $105.50 per barrel, while gasoline and diesel fuel each were cheaper by a few cents per gallon as well.

Grains Wait for USDA

Midday Monday, the USDA will release two key reports about the grain markets, which will be closely watched by farmers, consumers, and traders. The Planted Acreage Report will give the USDA’s estimate of how much corn, soybeans, and spring wheat were planted throughout the US this spring, while the Quarterly Grain Stocks Report will tally current US stockpiles of the grains.

With corn and wheat prices relatively low compared to soybeans, many farmers planted more beans this year instead of corn and wheat; the USDA is expected to show more than 82 million acres of beans planted this year, a huge jump from last year’s 76.5 million acres.

The stockpile report is expected to show over 3.7 billion bushels of corn, a relative abundance, nearly one billion bushels more corn in storage than in 2013. Meanwhile, soybean stockpiles could be significantly smaller than last year, likely shrinking below 400 million bushels.

Ahead of the report, corn and wheat prices were near the lowest price since early February, with July corn worth only $4.42 per bushel, and July Chicago wheat trading Friday for $5.85. Due to the limited short-term supply, July soybeans were much stronger, worth $14.35 per bushel.

 

Opinions are solely the writer's. Walt Breitinger is a commodity futures broker in Valparaiso, Ind.  He can be reached at (800) 411-3888 or www.indianafutures.com. This is not a solicitation of any order to buy or sell any market.

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Alex Breitinger

 

Breitinger & Sons, a division of Paragon Investments

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Comments

Dr. Information

Still waitin on the article about the rulings today.

Darwin's choice

SCOTUS-14

obama-0

obama/failing

The Big Dog's back

I bet those Chinese kids who make 99% of hobby lobby's products were on pins and needles over that decision.

Darwin's choice

obama/still failed.....14 times

coasterfan

Waiting for Darwin to say something new/pertinent for a change...

Today's decision is a speed bump. I look at the big picture. The man has accomplished a lot while in office, and he's been a far better option for America than McCain or Romney would have been.

If Republicans spent 1/10 as much energy finding a quality candidate for 2016 as they have spent tearing Obama to shreds, they just might win an election someday.

Donegan

Of course he has done a lot while in office. Too bad its all negative. He has lowered the living standards of Americans, Made the world not only hate us but look at us like were stupid, Doubled the debt, violated countless amendments and pandered to morons. Just think after he is out of office he will move on to make millions lobbying against the morons that elected him.

freespeech1

Toaster, what the hell has this man done? He single handedly destroyed our healthcare system, our standing in the world is gone, got a border agent killed by selling guns to cartels, lord knows where he was while our embassy was being burnt and 4 Americans were murdered, NSA spying on all of us, used the IRS to attack anyone that disagrees with him, VA is a mess, our border is being overrun, he steps all over the constitution having temper tantrums when anyone disagrees with them, yeah he sure has done a lot!! This man child will go down in history as the worse person to ever occupy the oval office. Its just too bad you democrats are too damn stupid to see it. I have one question toaster, if republicans are so bad, then why did your king hire a huge republican donor to run the VA?

jazzbo

freespeech 1 -

How do you get through life with your mind and your eyes closed ?

wasthere

Does Jizzbo ever have anything to contribute? He jumps in once in a while, uses his name calling and then proceeds to tell people to go away. Thanks for the entertaining reading.

jazzbo

isntthere-

Who the hell are you ? Another self appointed comment moderator?

At least a Right- wing nut for sure.

freespeech1

Awe looks like he went to the puppy school of commenting, same lame comments with no substance.

jazzbo

You are nobody.

Contango

Re: "U.S. crude flows abroad,"

They'll be selling condensates, which is a light sweet crude.

U.S. refineries are configured to run low-quality sour crude and can't use this light oil.

The U.S. can export this more expensive oil and continue to import cheaper oil - a win-win for the consumer and the U.S. economy.

http://money.cnn.com/2014/06/25/...

OMG.LOL.WT_

"Easing of tension in Iraq" REALLY?