Next Stop: Global Food Shortages. The Corn & Ethanol Report

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We kickoff the day with Chicago Fed Activity Index at 7:30 A.M., Dallas Fed Manufacturing Index at 9:30 A.M., Export Inspections at 10:00 A.m., 3-Month & 6-Month Bill Auction at 10:30 A.M., Cold Storage at 2;00 P.M., and Crop Progress at 3:00 P.M.

On the Corn front, as we move deeper into harvest open interest in the corn complex grew 7,221 contracts on Friday. The Midwest harvest will push strongly ahead over the next two weeks with warm and dry weather blanketing most of the Central US for the next 10 to 12 days. The only exemption is Wisconsin Tuesday and Wednesday and Indiana and Ohio later in the week. Otherwise, we have a favorable forecast for the Midwest US harvest with warm and dry weather allowing for crop dry down and combining. The 2023 harvest will be able to advance quickly amid the coming dry weather trend. What is worrisome to barge navigators is the Mississippi River flows are low and more rains are needed to keep the Mighty Mississippi’s flow for exports. The market will continue to worry about exports, yields, fund participation, and of course, always weather. In the overnight electronic session, the December corn is currently trading at 477 which is a ¼ of a cent lower. The trading range has been 478 ¼ to 474.

On the Ethanol front, Bloomberg reports Brazil is easing the global sugar shortage with their corn supply boom as they boost corn ethanol shares above the sugar ethanol base. Soaring sugar prices are amplifying global food inflation. A global sugar crunch drove prices of the sweetener to an 11-Year high which is about to ease, thanks to a crop that may be totally unrelated as more ethanol producers weigh corn ethanol for fuels as an option. There were no trades or open interest in ethanol futures.

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