We kicked off the day with Employment Cost Index QoQ, Employment Cost-Benefits QoQ, and Employment Cost-Wages QoQ, at 7:30 A.M., Redbook YoY at 7:55 A.M., S&P/Case-Schiller Home Price MoM & YoY, House Price Index at 8:00 A.M., Chicago PMI at 8:45 A.M., Consumer Confidence at 9:00 A.M, Dallas Fed Services Index and Dallas Fed Services Revenues at 9:30 A.M., Cattle at 2:00 P.M., API Energy Stocks at 3:30 P.M., and the First of 2 FOMC Meetings with Rate Decision Tomorrow at 1:00 P.M.

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On the Corn Front PRO Farmer Analysis reports, Expected large Brazilian corn exports to China in 2023 are worrying Brazil’s meat companies, according to a statement from Santa Catarina’s meat processors lobby Sindicarne. The group said competition from Chinese buyers is already reducing local supplies and making corn used for feed poultry and pork an “overpriced commodity. “Even with the sector being more prepared for negotiations and more attentive to stocks and purchases, there is always competition from the international market,” Sindicarne said. “For 2023 the signs are worrying.” According to Sindicarne, which represents global poultry and pork processors including JBS and BRF, the government must also “do its part” to attract investments aimed at reducing Brazil’s bottlenecks. The group said that while Brazil has created decent logistics network to export grains, there are no railroads connecting grain regions in the central west to southern Brazil, where pork and chicken are typically raised and processed.

Speaking of bottlenecks and the crisis low river levels. The US Army Corps of Engineers has been dredging the Mighty Mississippi 24-hours a day, 7-days a week since July….. ever since low water levels on the river due to drought… Started causing shipping backups. The Corps hopes to be done dredging by the end of the month. I will keep you posted as I receive the news. In yesterday’s action corn prices closed steady to higher following soybeans lead. Argentina had short-term relief to drought stricken areas of Argentina, forecasts expect dryer conditions by the end of the week. The next rain event slated for the middle part of this week across western and southern parts of Argentina, away from the larger producing areas. In the overnight electronic session the March corn is currently trading at 681 ¾ which is 2 cents lower. The trading range has been 683 ½ to 680 ½.

On the Ethanol Front India is blending its way to needing US ethanol news if it can keep on track for more ethanol in gasoline. Meanwhile, attorney generals of seven Midwest states are urging the EPA to respond to the E15 petition. The attorney generals of Iowa, Illinois, Minnesota, Missouri, Nebraska, South Dakota, and Wisconsin are urging the Biden administration to take action on the petition filed by a bipartisan coalition of governors in April 2022 seeking a permanent solution to year-round E15 sales with their states. Ethanol Futures lacking any open interest.

More By This Author:

Corn Rallies On No Fresh News. The Corn & Ethanol Report
Eyes Remain Focused On Argentine Rains. The Corn & Ethanol Report
Expect A Whole Lot Of Grain Action Today. The Corn & Ethanol Report