Fed Dovish Keeps Rates Unchanged As Expected. The Corn & Ethanol Report

We started the last day of April with Employment Cost Index, Export Sales, Jobless Claims, and Personal Income at 7:30 A.m., Chicago PMI at 8:45 A.M., EIA Gas Storage at 9:30 A.M., 4-Week & 8-Week Bill Auction at 10:30 A.M., and the 154-Day Bill Auction at 12:00 P.M.

On the Corn front, we were modestly higher after a see-saw trading session in yesterday's action. The funds remain short and although we did see new lows, we had bullish news with President Trump’s order to reopen livestock processing plants which was welcome news for feed demand. This created some short-covering and weather may delay plantings in parts of the Corn Belt which boosted the May contract to settle at 304 ½ which was up 1 ¾ of a cent. Iowa and Illinois are way ahead of the planting curve while other states in the Corn Belt lag behind as more rains forecast with the mercury rising after today’s soggy cool front. In the overnight electronic session the May Corn is currently trading at 305 ½ which is 1 cent higher. The trading range has been 307 ½ to 305 ¼. As we wait for this morning's Export Sales.

On the Ethanol front, the June contract settled yesterday at 1.031 which was 0.053 higher following the majority of higher trade in the Energy Complex. The market is trying to bounce from the recent dismal showing the coronavirus and oil production war has brought to bear. Although there were no trades posted in the overnight electronic session the June contract is showing 2 bids @ 1.031 and 1 offer @ 1.044 which could mean steady to higher prices two sessions in a row.

On the Crude Oil front, the market is getting a much-needed bounce and it looks like the new major support number is $10 a barrel after going negative last week. As we continue to find ways to battle this coronavirus we are making strides of finding ways to defeat it. There is light at the end of the tunnel as we unleash the ingenuity of freedom and free markets to combat this virus so we can get back to as close to normal as we were before. We will be seeing movement as this market realizes it as well. Saudi Prince Mohammed bin Salman could have had a great 2020 but his timing like the OPEC meeting two years ago was like Wrong Way Corrigan. In the overnight electronic session the June contract is currently trading at 1745 which is 239 points higher. The trading range has been 1780 to 1545.

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