Cezary's Feed
May 16, 2014

Analysis – U.S. regional banks tip-toe into commodities as Wall Street faces shake-out

NEW YORK (Reuters) – Two years ago, Denver-based oil and gas driller Bonanza Creek Energy wanted to spread its credit risk and hedge its production – and it called on some regional Main Street banks to help do it.

It ended up with a group of banks, including several names little-known in commodity circles until recently. Ohio-based KeyCorp led the lenders and was also among the banks providing hedging.

May 16, 2014

U.S. regional banks tip-toe into commodities as Wall Street faces shake-out

NEW YORK (Reuters) – Two years ago, Denver-based oil and gas driller Bonanza Creek Energy (BCEI.N: Quote, Profile, Research, Stock Buzz) wanted to spread its credit risk and hedge its production – and it called on some regional Main Street banks to help do it.

It ended up with a group of banks, including several names little-known in commodity circles until recently. Ohio-based KeyCorp (KEY.N: Quote, Profile, Research, Stock Buzz) led the lenders and was also among the banks providing hedging.

May 16, 2014

US regional banks tip-toe into commodities as Wall St faces shake-out

NEW YORK, May 16 (Reuters) – Two years ago, Denver-based oil
and gas driller Bonanza Creek Energy wanted to spread
its credit risk and hedge its production – and it called on some
regional Main Street banks to help do it.

It ended up with a group of banks, including several names
little-known in commodity circles until recently. Ohio-based
KeyCorp led the lenders and was also among the banks
providing hedging.

May 15, 2014

Biofuel groups take aim at EPA methods in U.S. blending quota cuts

NEW YORK, May 15 (Reuters) – Nearly three dozen advanced
biofuel companies including DuPont and Spain’s Abengoa
appealed to President Barack Obama on Thursday to rethink the
methodology for setting U.S. biofuel blending quotas.

In their letter, a copy of which was seen by Reuters, 33
suppliers of “advanced” biofuels such as lower-carbon ethanol
made from corn stovers, said the proposed cuts “are too
aggressive” and said the final rule should increase the volumes.

May 12, 2014

Timeline: Delta Air Lines’ and Carlyle’s efforts to ease U.S. ethanol rules

NEW YORK (Reuters) – In 2013, Delta Air Lines and The Carlyle Group joined the refining industry in lobbying to lower federal mandates on how much ethanol and other biofuels have to be blended into U.S. fuel supplies.

A surge in the price in renewable identification numbers (RINs), credits used to track the production and blending of ethanol and other biofuels into motor fuel, saddled their investments in ageing Philadelphia-area refineries with hundreds of millions of dollars of additional costs.

May 12, 2014

How ‘Big Corn’ lost the ethanol battle to Philadelphia refiners

NEW YORK/WASHINGTON, May 12 (Reuters) – Six months ago the
U.S. oil industry scored a surprise win against farm groups when
the Obama administration proposed slashing the amount of ethanol
refiners must blend into gasoline, a move that could save them
billions of dollars.

Stunned by the reversal, producers of the corn-based biofuel
and their supporters are now fighting back ahead of a June
deadline for the Environmental Protection Agency (EPA) to make a
final decision on the cut.

May 12, 2014

Delta Air Lines’ and Carlyle’s efforts to ease U.S. ethanol rules

NEW YORK, May 12 (Reuters) – In 2013, Delta Air Lines and The
Carlyle Group joined the refining industry in lobbying to lower federal
mandates on how much ethanol and other biofuels have to be blended into U.S.
fuel supplies.

A surge in the price in renewable identification numbers (RINs), credits
used to track the production and blending of ethanol and other biofuels into
motor fuel, saddled their investments in ageing Philadelphia-area refineries
with hundreds of millions of dollars of additional costs.

Apr 16, 2014

CME trading outage showed that man can still match the machine

NEW YORK/CHICAGO (Reuters) – Just over a week ago, CME Group Inc suffered the worst-ever trading outage on the world’s most important agricultural markets, plunging electronic screens into darkness and sending dozens of traders scrambling for Chicago’s famous but now often deserted trading “pits”.

It seemed like an impossible task: replace the seamless efficiency of an electronic trading screen with hand signals and guttural shouts to execute clients’ orders to trade corn, wheat or cattle during the “close”, often the busiest time of the day.

Apr 16, 2014

CME trading outage showed that man can still match the machine

NEW YORK/CHICAGO (Reuters) – Just over a week ago, CME Group Inc suffered the worst-ever trading outage on the world’s most important agricultural markets, plunging electronic screens into darkness and sending dozens of traders scrambling for Chicago’s famous but now often deserted trading “pits”.

It seemed like an impossible task: replace the seamless efficiency of an electronic trading screen with hand signals and guttural shouts to execute clients’ orders to trade corn, wheat or cattle during the “close”, often the busiest time of the day.

Mar 31, 2014

The tally is in: Ethanol ‘blend wall’ cost refiners at least $1.35 billion

NEW YORK (Reuters) – Last year’s spike in the price of ethanol blending credits cost independent refiners at least $1.35 billion, more than three times as much as the year before, according to a Reuters’ review of securities filings.

The tally, which has not been previously reported, is a conservative estimate as it includes only nine refiners that disclosed the figures. Others affected did not specify the cost of buying Renewable Identification Number (RINs), paper credits used to meet quotas for blending biofuel into gasoline and diesel.