GDP (Q1) Fed Decision And Earnings On Tap. The Corn & Ethanol Report.

We kicked off this hump day with MBA Mortgage Applications and MBA 30-Year Mortgage Rate at 6:00 A.M., GDP at 7:30 A.M., Pending Home Sales MoM and YoY at 9:00 A.M., EIA Energy Stocks at 9:30 A.M., 119-Day Bill Auction and 273-Day Bill Auction at 10:30 A.M., 103-Day Bill Auction at 12:00 P.M., Fed Decision on Rates at 1:00 P.M., Fed Press Conference at 1:30 P.M., Dairy Product Sales at 2:00 P.M. and we have Boeing and ADM Earnings today. On the Corn front funds remain short as we traded lower in yesterday's action as we start to see rollovers out of the May contract as we close in on First Notice Day. The talk is that President Trump will give an executive order (The National Defense Act) to keep meat processing plants open as many are shutting down and we could lose 80% of meats going to the grocery store. We do need to keep the train rolling to get the goods where we need them and sometimes do not even think what it takes to get it to the destination. The USDA reported that the Corn crop is 27% planted but as I wrote yesterday Iowa is about complete in the first round of plantings and Illinois is way ahead of the average. We should see more declines in the agriculture commodities with several fundamentals squeezing the markets for now. In the overnight electronic session the May Corn is currently trading at 303 ¼ which is a ½ of a cent higher. The trading range has been 304 ½ to 302.

On the Ethanol front, no surprise production was down eight weeks in a row with all the ethanol plants either idling or running less than half speed. There have been some plants that had a silver lining as ethanol is a major ingredient to hand sanitizer and that is the only demand I see at the moment. The pace should continue to slow as there is no place to store product and ethanol is now more expensive than gasoline. We could see a leveling off, but we need to carefully get back to our everyday lives and get back to normal as best as we can. There were no trades posted in the overnight electronic session. The June ethanol settled at 0.939 and is currently showing 2 bids @ 0.934 and 1 offer @ 1.039.

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