We kicked off the day with NFIB Business Optimism Index at 5:00 A.M., Redbook YoY at 7:55 A.M., Crop Production USDA Supply/Demand and WASDE Reports at 11:00 A.M., 3-Year Note Auction at 12:00 P.M., Fed Harker Speech at 3:00 P.M., API Energy Stocks at 3;30 P.M., and Fed Kashkari Speech at 6:30 P.m.

Photo by Waldemar on Unsplash

On the Corn Front the market rallied with old crop leading the way with May 10 ½ cents higher, July 10 ¾ cents higher, and September & December each up 6 cents. The drought in the Southwest corn belt along with delays in the Northern plains offset expectations for good planting progress in the Midwest. Export Inspections at 32 million bushels were in line with expectations. YTD commitments at 794 million are down 37% from aa year ago. Funds were short covering and reversed their net short position to roughly 21, 500 long positions. Plantings were slightly ahead of last week. Corn planting is underway in 7 states, Illinois, Kansas, Kentucky, Missouri, North Carolina, Tennessee. And Texas. We will be waiting to decipher the Crop Production USDA Supply/Demand and WASDE data due out at 11:00 A.M.,  late this morning. In the overnight electronic session the May corn is currently trading at 653 ½ which is a ½ of a cent lower. The trading range has been 657 ½ to 652.

On the Ethanol Front the Indian Express newspaper report ethanol supplies in Maharashtra are expected to fall this season due to low sugarcane yields and production with just 1.27 million liters producedcompared to the 1.32 million liters expected. As such, sugarcane mills are not expected to meet their contracted volume commitments of ethanol supply but there is a hope the state’s 12% blending mandate will still be achieved thanks to grain-based ethanol production. The crush has nearly come to an end this season with just six of the state’s mills still crushing. With the Renewable Fuels Association and the US Grains Council pushing to export more ethanol fuel and biodiesel to Latin America and many other destinations on the globe like Japan the US ethanol industry could be a driving force in the world market, this could further open up more doors. Remember the US is the largest producer of ethanol with Brazil coming in second controlling 82% of the world’s ethanol. There were no trades or open interest in ethanol futures.

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