East Coast who say they are struggling with the cost of meeting the Renewable Fuel Standard (RFS) requirements. The industry has requested tweaks to the policy in the past that would cut the annual targets for biofuels; allow Ethanol exports to be counted against those targets, or a shift in blending burden to supply terminals from the refineries. But the Trump administration has ruled in favor of Big Corn and against the refining industry in a series of decisions this year. On the Grain front all December contracts go off the board tomorrow so it would behoove traders with a position to roll or liquidate before the last minute to avoid any type of a squeeze play is how dummies guide to trading.
I remain short DTO (read the prospectus). It is a flawed ETF and the risk to oil prices now are a price spike, not a collapse. The global economy is accelerating and with it so too will demand; the middle east has been relatively peaceful (how long can that last?), OPEC is extending production cuts and while up over 2016, rig counts have been essentially flat for 2017 despite the rise in oil prices.
If this pattern behaves itself, the target setup is about 55.25, where I’ve drawn that green tint.