Corn Carryout Lowered Again. The Corn & Ethanol Report

We started off the day with Michigan Current Conditions Prel (JUN), Michigan Inflation Expectations Prel (JUN), Michigan Consumer Sentiment Prel (JUN) Michigan 5-Year Inflation Expectations Prel (JUN) and Michigan Consumer Expectations Prel (JUN) ay 9:00 A.M., N.Y. Fed Treasury Purchases 10 to 22.5 yrs. At 9;30 A.M. and Baker Hughes Oil & Total Rig Count at 12:00 P.M.

green-leafed plants

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On the Corn front, yesterday’s USDA report was friendly to corn but bearish for soybeans. Weekly corn exports were not as favorable as some traders had hoped for. There are still some analysts that believe the top is in. I still believe it is too early for that prediction. Even with corn and soybeans ahead of schedule, the carryover market is tight in the U.S. and South America. In the overnight electronic session, the July corn is currently trading at 692 which is 7 cents lower. The trading range has been 703 to 689.

On the Ethanol front, there were no new headlines to speak of. U.S. exports during April were 112.7 million gallons, a decrease of 15% from March. The Renewable Fuels Association said month-to-month declines for Canada, India and China canceled out an eight-year high for Finland and a six-month high for Mexico, along with an increase for Peru and Saudi Arabia Year to date exports are 512 million gallons which is behind last year. Exports of distillers dried grain were 832,736 tons, 2% lower than the previous month with Mexico taking the top slot for the seventh month in a row, even as the volume of sales declined. The other top markets were Vietnam, South Korea, Turkey, and Indonesia

The RFA also said there have been no significant ethanol imports this year, the lowest since 2017.

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