Expect Higher & Higher Prices. The Corn & Ethanol Report
We kicked off the day with Fed Barkin Speech at 8:00 A.M., Baker Hughes Oil & Total Rig Count at 12:00 P.M>, and Cattle On Feed at 2:00 P.M.
On the Corn Front we were lower on the day in yesterday’s action, however, risk on factors remain. Exports should be picking up and we saw that in yesterday’s Export Sales with many purchasers buying the new crop. I expect more action in the export market as we see the reality of substance in energy and food in the winter months. I do believe this market has legs in it, and with exports picking up the September 12th Crop Production USDA Supply/Demand and WASDE data could send a message that inflation and recession will only boost prices. In the overnight electronic session the September corn is currently trading at 620 which is a ¼ of a cent higher. The trading range has been 622 ¾ to 616.
On the Ethanol Front the market could get a boost from carbon capture credits in the new Biden Climate Law. It is a major expansion in tax credits for companies that store carbon emissions under Biden’s new law. There were no trades in the ethanol futures as the cash market thrives.
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