Energy & Food Crisis – USDA WASDE On Tap. The Corn & Ethanol Report
Photo by Waldemar Brandt on Unsplash
We start off the day with Wholesale Trade at 7;30 A.M., Crop Production USDA Supply/Demand and WASDE Reports at 11:00 A.M., and Baker Hughes Oil & Total Rig Count at 11:00 A.M.
On the Corn front, we head into today’s report with record-high prices for fertilizer created with? Yes, you guessed it, energy. Such as crude products and natural gas. Throw in diesel costs, nothing moving out of the Black sea which should take 52.4 million tonnes off the market in the 2021-22 growing season. Weather fears continue in South America and questionable U.S. weather as we move into planting season. This recipe for disaster grows by the hour with no stewardship. In the overnight electronic session, the May corn is currently trading at 757 ¾ which is unchanged. The trading range has been 758 ¾ to 752 ¾.
On the Ethanol front, ethanol manufacturers and corn growers are disappointed with the latest attempt by U.S. President Joe Biden’s administration to quell soaring gas prices. Again we must stress-energy and food fuel a healthy economy. But all we see are excuses and rampant inflation. There were no trades or open interest in ethanol futures.
On the Crude Oil front, what’s another botched policy. Oil settled lower yesterday mainly on doubts the Russian oil sanctions will have an effect. Also, news of the release of the Strategic Petroleum Reserves will have a short-term impact. Let’s take a stroll down memory lane folks like before the millennium. The release of SPR’s is a tactic that does not work. Guys, it's 2022. The market continues making knee-jerk reactions to every headline, and we are not short of headlines. After the release of the SPR’s does Biden have another bullet, other than embracing the oil industry and getting America back to work. In the overnight electronic session, the May crude oil is currently trading at 9691 which is 88 points higher. The trading range has been 9773 to 9529.
On the Natural Gas front, this market is a yo-yo too, trying to follow all of the headlines. Old Man Winter is not done with us yet and that should be supportive to prices heading into the weekend./ In the overnight electronic session the may natural gas is currently trading at 6.474 which is 0.115 higher. The trading range has been 6.538 to 6.343.
God Bless the Ukraine & Eastern Europe!
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