Corn Turnaround Tuesday Cannot Be Denied. The Corn & Ethanol Report

We started off the day with MBA Mortgage Applications and MBA 30-Year Mortgage Rate (09/Apr) at 6:00 A.M., U.S. Export and Import Prices YoY & MoM (Mar) at 7:30 A.M., EIA Energy Stocks at 9:30 A.M., Fed Chair Powell Speech at 11:00 A.M., Fed Beige Book at 1:00 P.M., Fed Williams speech at 1:30 P.M., Dairy Product Sales at 2:00 P.M., Fed Clarida speech at 2:45 P.M., Fed Bostic Speech at 3:00 P.M., and Fed Kaplan Speech at 5:05 P.M.

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On the Corn front, total U.S. estimates of plantings were lower which contributed to the spike. Also, the talk of cooler temps with rain and possible frost added to pressures in global sales. South America was at one point only exporting to domestic locations. And in this environment, it should bring the bulls back to the table. With little fraction of error with carryovers as tight as they are. Energy and feed will be consumed, and the trigger is also human consumption. And no importer will want to be at the end of the line when demand is high, and supplies are tight. It changes the whole market picture.

With the current situation we know China is buying feed to replenish their stocks as opposed of importing more beef and pork from the U.S. and other exporting countries. This being said, the rollover of concerns will be with other commodities investing on corn prices. With ethanol being pushed and the bigger risk in the Middle East the API Energy Stocks showed a draw of 3.608M on crude oil, Cushing had builds of 0.917M, Gasoline Stocks up a whopping 5.565M, and Distillates Down a Whopping 300.6M. These numbers tell me the market is going to see dramatic moves heading into the driving season. The draw in crude and distillates should paint that picture.

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