Frost On The Way? The Corn & Ethanol Report

We start off the day with Consumer Inflation Index (Mar) and Export Inspections at 10:00 A.M., 3-Month and 6-Month Bill Auction at 10:30 A.M., 10-Year and 3-Year Note Auction at 12:00 P.M., Monthly Budget Statement (Mar) at 1:00 P.M. and Crop Progress at 3;00 P.M.

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On the Corn front, last Friday’s USDA report showed U.S. corn ending stocks .044 billion bushels lower than the average estimate. World-ending stocks were 0.97 million metric tons lower than the average estimate, while production in Brazil and Argentina were higher than estimates. A bullish corn number and bearish soybean data paved a way for a rocky road and pared prices. The forecast is calling for both cold and rainy weather in the next couple of weeks that could create a frost across the Corn Belt and that could have shorts scrambling to cover. In the overnight electronic session, the May corn is currently trading at 579 ¼ which is 2 cents higher. The trading range has been 586 to 577 ¼ with soybean weakness weighing in on corn prices.

On the Ethanol front, the USDA increased 2020-21 corn for ethanol use and new estimates are at 4.975 billion bushels of corn will go to ethanol which is up from the March forecast of 4.95 billion bushels. There were no trades posted in the overnight electronic session. The May contract settled at 1.905 and is currently showing no market with Open Interest at 34 contracts.

On the Crude Oil front, Saudi Arabia will supply all the crude oil that was requested by India’s state-owned refiners and at least five other Asian nations. The Kingdom will deliver what most the refiners are asking for in May-loading cargoes, while one of the customers had its volume to the U.S. curtailed. Two other customers received some cuts to overall volumes. Aramco decline comment. And the start of the summertime driving season is close at hand. In the overnight electronic session, the May crude oil is currently trading at 6001 which is 69 points higher. The trading range has been from 6018 to 5873.

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