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Tidbits, Q&A: Soybeans Marketing, 45Z, FOB 1/13/25

Tidbits


Susan Stroud of No Bull Ag stated Sunday the Biden Administration Friday afternoon said imported used cooking oil will not qualify for tax credits under 45Z. In conclusion, she said, “Theoretically clearing the way for more soybean oil demand.”

 

We hope she is correct, but we did not see it that clearly. The Renewable Fuels Association (RFA) issued this statement late Friday regarding the Treasury’s 45Z comments issued Friday afternoon: 

The U.S. Treasury today released a “notice of intent to propose regulations” regarding implementation of the Inflation Reduction Act’s Clean Fuel Production Credit (“45Z”). Today’s notice begins a 90-day comment period that leaves major decisions on the future of the 45Z credit to the incoming Trump administration.

“While we are pleased to see Treasury has finally released its long overdue guidance on 45Z, today’s package falls short of expectations and remains incomplete,” said Geoff Cooper, President and CEO of the Renewable Fuels Association. “The guidance is a potential step in the right direction, but much work remains to be done before clean fuel producers, farmers, and consumers can fully benefit from the 45Z program.”

 

You can read the entire RFA response at this link.


 

Q&A on Soybean Marketing


Received very early Saturday (11 Jan 2025) morning:

"I have a call spread based on CBOT soybeans of May '25. The range is between $10.20 and $10.80. I have protected my downside leaving room for upside. I have until April 25th to make a move on the call spread unless it will expire worthless. When I took out the call spread, it cost me 27 cents to do so. So to "break even", I would need to sell May beans for $10.47. I saw your mailing earlier to liquidate all bean positions.

Should I liquidate even though it is below my "break even". Currently, May beans are 10.29¾ or should I wait until February or March to capitalize on a potential rally. This is my first year working with a call spread so I am unfamiliar with all of this, trying to get a better understanding of the market.

Thanks, I would appreciate your advice and recommendations. Doug"

 

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