Five Key Charts To Watch In Global Commodities This Week

An attendee watches a flying display through a pair binoculars on the opening day of the Farnborough International Airshow in Farnborough, U.K. (Photographer: Simon Dawson/Bloomberg)

(Bloomberg) -- This week's edition gives a nod to America's farm belt, where soybean plantings are moving at a record pace and corn growers may see a slight bump thanks to the Environmental Protection Agency's decision to issue an emergency waiver to enable widespread sales of higher-ethanol E15 gasoline this summer. Elsewhere, more than 24,000 people will descend on Houston for the Offshore Technology Conference. Here are five notable charts to consider in global commodity markets.

Crops

Favorable dry weather in key parts of the US crop belt is allowing farmers to jumpstart soybean plantings. Data due Monday from the Department of Agriculture will signal just how far ahead they are this season. A report last week showed a record 9% planted in the first two weeks of the season, much higher than the 3% at the same time in 2022. Traditionally, farmers would plant corn before soybeans in the spring, but that has started to change due to shifting expectations that early planting will help boost yields.

Gasoline

The amount of ethanol blended into US gasoline could see a modest increase this year, as a result of the Biden administration's decision last week to exempt the E15 fuel blend from seasonal volatility limits. A similar approach last year unlocked additional demand for the corn-based fuel, though limited blending, tanks and retail infrastructure remain a barrier for more widespread adoption. The move comes as average pump prices nationwide stand at around $3.61 a gallon, according to AAA data, almost 14% lower than a year ago.

Oil

One of the world's largest oil gatherings kicks off in Houston starting Monday at the Offshore Technology Conference. The four-day event will likely focus on some of the most pressing issues facing the offshore energy sector, as well as the latest technologies and innovations. The nearby Gulf of Mexico has seen a recovery in total oil production after a pullback during the global pandemic, but is still pumping less than at its peak in August of 2019.

Mining M&A

Teck Resources Ltd. is going back to the drawing board on plans to separate its metals and coal businesses after failing to convince shareholders of an earlier, more complicated plan while it fended off a takeover attempt from Glencore Plc. The Swiss commodities giant has reiterated its $23 billion bid and signaled that it's willing to offer even more. If successful, the transaction would rank among the top 10 biggest takeovers of metals producers ever. Meanwhile, Newmont Corp. has sweetened its bid for Newcrest Mining Ltd. in what would be the world's largest gold acquisition if it pans out.

Solar Power

The move by California, the largest US rooftop-solar market, to cut benefits for home solar buyers is expected to slow installations, raising questions about the financial impact to the nation's residential solar companies. The early results have been mixed. Enphase Energy Inc., a solar equipment maker and bellwether for the sector, plunged more than 25% last week after warning that sales may be sluggish in the second quarter because of the Golden State's regulatory change and higher interest rates. Sunnova Energy International Inc., a home solar provider, gave a sunnier outlook, increasing its guidance and forecasting stronger customer additions than previously forecast. Further insight of how the regulatory shift will impact the industry will roll in on Wednesday when Sunrun Inc. and SunPower Corp. report first-quarter earnings. While BloombergNEF forecasts modest growth in solar generation over the next few years, it will cool to just 1.42 gigawatts by 2030 in California.