It’s crunch time for planting decisions. Today is the last day for corn prevented planting filings – a range of options on crop insurance that gives payouts for not planting the full, normal crop – for the corn belt. CBOT corn futures rallied this week to break-out levels as corn acres planted as of last week came in well below both last year and the 5-year average. And now the fall army worm could decimate crops in China.
This past week 40/70m saw movement in both northern white and Permian markets. Northern white 40/70m pricing was mixed and continues to be the one northern white product moving on a consistent basis. The FOB Odessa 40/70m price was down to its lowest price in the last 3 months, while FOB mine pricing was up week over week. This price movement indicates an uptick in demand for 40/70m in other basins, while a flat or weaker demand for the product in the Permian. This spread will be something to keep an eye on as northern white producers seek arbitrage opportunities on the spot market.
It was much of the same last week in the market, all pricing dipped lower but none making a major move. The northern white market remains slightly oversupplied but many producers are optimistic for May where they expect demand to pick up, bringing higher prices with it.
The northern white market has begun Q2 with sideways movement following a strong end to Q1. 40/70m has been especially difficult to source for both spot and contract customers over the past several weeks;
PanXchange produces indices for emerging commodities bringing price transparency, price discovery, and key market intelligence. We acquire pricing information by conducting surveys with vetted and anonymous market participants and make expert assessments based on a variety of factors. We will publish monthly spot biomass assessments for Colorado, Oregon, and Kentucky, with plans of expanding crude, distillate, and isolate reporting as well as additional regions.