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DTN analyst Todd Hultman discusses the Sustainable Aviation Fuel tax credit, which the Treasury Department was set to define, and its potential to add biofuel demand. He also notes USDA projects a 2024-25 U.S. corn surplus of 2.53 billion bushels, the largest since 1987-88.
New biofuel demand could absorb surplus corn and soybean supply, supporting prices, but the projected large 2024-25 surplus remains bearish for feed grain values.
dtnpf.comTodd HultmanMar 2, 2024After 318 past bullish policy events, CORN moved a median -0.1% over 5 sessions (48% higher; middle half -1.4% to +1.5%), and -0.2% over 20.
After 356 past bullish policy events, SOY moved a median +0.1% over 5 sessions (53% higher; middle half -1.2% to +2.3%), and -0.9% over 20.
After 842 past bullish policy events, SBO moved a median +0.2% over 5 sessions (52% higher; middle half -1.6% to +2.1%), and -0.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
