#10 | Slightly correlated
This one is fun - retail fertilizer prices + nearby corn futures:
From the beginning of June, anhydrous is down 40%, urea down 27%, 28% liquid down 33%, while DAP and potash are both down 20%.
Not to fail to mention anhydrous and urea are currently half of their prices, one year ago.
#9 | Ethanol, strong like bull
This past week was another big one for ethanol production at 1,009 thousand barrels per day, up 3% from the week prior and up 18% compared with the same week last year.
Comparing this week’s production with one year ago it looks like a bit of an anomaly as the fourth week of the marketing year in 2022 was a 5-year low amid maintenance downtimes, logistical challenges and notably smaller margins.
One year ago, operating margins were a fraction of current values which gave plants little incentive to grind hard until cheap new crop corn came to market.
Plants are currently running hard and will continue to do so until margins dictate otherwise.
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