Deferred Month Corn Taking A Beating. The Corn & Ethanol Report
We kicked off the day with MBA 30-Year Mortgage Rate, MBA Mortgage Market Index, MBA Mortgage Refinance Index, MBA Purchase Index, and MBA Mortgage Applications at 6:00 A.M., Goods Trade Balance Adv., Retail Inventories Ex Autos MoM Adv., and Wholesale Inventories MoM Adv., at 7:30 A.M., Fed Chair Powell Speech at 8:30 A.M., EIA Energy Stocks at 9:30 A.M., 2-Year NFRN Auction and 17-Week Bill Auction at 10:30 A.M., 7-Year Note Auction at 12:00 P.M., Dairy Products Sales at 2:00 P.M., and Bank Stress Test at 3:30 P.M.
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On the Corn Front the Central US forecast has improved in that the primary Corn Belt will no longer be completely dry. A series of scattered events is probable this weekend and next week, but whether subsoil moisture is going to increase is uncertain. The 10-day GFS model is more conducive to salvaging yield potential in the East than the EU model, however, the GFS has been the most erratic and least reliable so far this season. A pattern of dryness and building warmth will blanket the Central US into Saturday. Moisture will be confined to Western Northeast and Upper Great Lakes. Temperatures in the low 100’s will reach northward into Kansas, Missouri, Southern & Western Illinois Friday and Saturday. Drought/crop stress worsens nearby before a possible improvement next week. Remember it is not what you plant but what you grow. And the all-important reports Friday and Monday with Grain Stocks and Planted Acreage Friday and Crop Progress/Ratings on Monday. In the overnight electronic session the July corn is currently trading at 621 ¼ which is 1 ¾ of a cent lower. The trading range has been 630 ¾ to 620 ½ and dropping as I write.
On the Ethanol Front tax incentives to sell gas with a higher blend of ethanol is now law in Illinois. The Governor signed Senate Bill 1963 that gives gas stations a 10% sales tax exemption to sell gas with a higher ethanol blend. The sales tax incentive is designed to boost E15 blend, says Russ Orrill, public policy manager for the Illinois Corn Growers Association. “In Iowa, there are a lot more stations that sell gas with an E15 blend. We’re trying to increase the need and want for E15 here in Illinois,” Orrill said. Most Illinois motorists buy gas with a 10% ethanol blend. In May the EPA signed a waiver to allow the sale of E15 ethanol blend this summer. The EPA is expected to permit year-round sales of E15 in seven Midwest states including Illinois in 2024. This story was by Zeta Cross & Kevin Bessler with Illinois Radio Network. There were no trades or open interest in ethanol futures.
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