Fed Afraid To Pull The Trigger-This Time. The Corn & Ethanol Report

We kicked off the day with Export Sales, Imports, Exports, NY Empire State Manufacturing Index, Philadelphia Fed Manufacturing Index, Retail Sales Ex Autos MoM, Retail Sales at 7:30 A.M.  Ex Gas/Autos MoM, Philly Fed Business Conditions, Philly Fed CAPEX Index, Philly Fed Employment, Philly Fed New Orders, Philly Fed Prices Paid, Jobless Claims 4-Week Average, Retail Sales YoY, and Continuing Jobless Claims at 9:00 A.M.., Industrial Production MoM & YoY, and Capacity Utilization at (:15 A.M, EIA Gas Storage at 9:30 A.M., 4-Week & 8-Week Bill Auction at 1030 A.M., !5-Year & 30 Year Mortgage Rate and NOPA Crush at 11:00 A.M., Net Long-term TIC Flows, Overall Net Capital Flows, and Foreign Bond Investment at 2:00 P.M.

green-leafed plants

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On the Corn Front the Fed kept interest rates in check but don’t get excited to soon, Fed Chair Jerome Powell was chirping in his Press Conference it will be an excited July, meaning Fed Members were split on this pause. On the Corn Front weather remains all of our worries with deepening drought a concern. The European and US weather modules pretty much totally concur with the basics of future US pattern into late June. There’s little fundamental change, with soaking rain confined to the Central Plains and Southeast, where flooding and severe weather is more than probable. Areas where corn and soybeans are most concentrated face ongoing rapid soil moisture loss. It’s the location of this budding drought that is most important and worrisome. And I am not expecting any great surprise on our exports which will find out at 7:30 A.M. with Export Sales. In the overnight electronic session the July corn is currently trading at 614 ¾ which is 7 cents higher. The trading range has been 615 ¼ to 607 ¼.

On the ethanol Front Biofuels International reports the EU hits record level for Green House Gas (GHG) reduction. It was the 11th consecutive year in which the EU renewable ethanol increased its GHG reduction score saving millions of euro’s. David Carpintero, director general of ePure, the European renewable ethanol association, was quoted, “This places Europe’s renewable ethanol as a world leader in terms od sustainability.” Maybe they should also catch up with the US with Paris Climate Accord and NATO contributions. There were no trades or open interest in ethanol futures.


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