We started off the day with MBA Mortgage Market Index (25/Mar), MBA Mortgage Refinance Index (25/Mar), MBA Purchase Index (25/Mar), MBA Mortgage Applications (25/Mar), and MBA 30-Year Mortgage Rate (25/Mar) at 6:00 A.M., ADP Employment Change (Mar) at 7:15 A.M., GDP Price Index QoQ Q4, GDP Growth Rate QoQ Final Q4, GDP Sales QoQ Final Q4, PCE Prices QoQ Final Q4, Real Consumer Spending QoQ Final Q4 and Core Prices QoQ Final Q4 at 7:30 A.M., EIA Energy stocks at 9:30 A.M., Dairy Products Sales and Hogs & Pigs at 2:00 P.M.

Photo by Waldemar Brandt on Unsplash

On the Corn Front the futures ended lower in yesterdays action. There is higher 20/21 corn demand. There are traders concerned about lower China demand with stories floating that China announced its biggest city-wide lockdown since the beginning of the pandemic two years ago. Although China was reluctant to lockdown Shanghai being densely populated and China’s commercial capital. We will keep you posted on this event. Remember we have Prospective Plantings tomorrow. In the overnight electronic session the mat corn is currently trading at 737 ¼ which is 11 cents higher. The trading range has been 737 ½ to 726 ¾.

On the Ethanol Front domestic hydrous ethanol sales by mills in Center-South Brazil totaled 632.03 million liters during the first half of March, 17.33 higher than the second half of February data from Brazilian sugarcane industry group UNICA showed March 28^th. The quantity of anhydrous ethanol sold to the market H1 March totaled 434.72 million liters, 10.73% higher than H2 Feb, and 11.39% higher than a year ago. There were no trades or open interest in ethanol futures. We will get US production and supply this morning.

On the Crude Oil Front the market is adding risk-on this morning. Many traders are not convinced there is a true deal with Russia and the Ukraine. Some analysts believe the Russian’s are actually doing a troop movement because the Ukraine is thwarting their efforts to reach other high valued land objectives. Russian tankers are vanishing off the map as Asia may become a “default market” for Russian oil. Poland will end Russian imports and Germany warns to end all Russian oil imports by years end and is concerned about gas levels calling on people to conserve. In the overnight electronic session the May crude oil is currently trading at 10726 which is 302 points higher. The trading range has been 10770 to 10455.

On the Natural Gas Front Reuters reports, what happens if Russia turns off gas to Germany? We will see more risk on in the markets as they have been taking a beating the last two trading sessions. The US must get a plan together to export LNG to Europe. We will see how this latest game of chicken pans out with Putin. In the overnight electronic session the May natural gas is currently trading at 5.377 which is 0.042 higher. The trading range has been 5.400 to 5.270.