Half Of U.S. Corn Crop Planted. The Corn & Ethanol Report

We kicked off the day with U.S. Trade Balance at 7:30 A.M., Redbook YoY (01/May) at 7:55 A.M., IBD/TIPP Economic Optimism (May), Factory Orders MoM (Mar) and Factory Orders ex Transportation at 9:00 A.M., API Energy Stocks at 3:30 P.M. and Total Vehicle Sales at 6:00 P.M.

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On the Corn front, with half the corn in the ground as of yesterday’s USDA Crop Progress report showed. We still have weather hurdles again that could slow down plantings as Iowa and Illinois race forward. We also had multiple brief tornados touchdown in Central Illinois last night. Corn planting progress state by state is well above the five-year average and last year, showing we are 29% ahead of schedule. At these prices’ farmers see the urgency to get the crop in the ground. We also have to consider growing in drought conditions with 14 states having no topsoil moisture in surplus conditions. In the overnight electronic session, the July corn is currently trading at 688 ¼ which is 8 ¾ cents higher. The trading range has been 692 ½ to 676.

On the Ethanol front, John Perkins with Brownfield AG News for America reports that March corn for ethanol use is upon the month and year. The USDA said 420.045 million bushels of corn were used for ethanol production in March. That was a 26% increase from February, which was impacted by late-month cold and snow limiting movement causing some plants to idle. We were up 2% from a year ago during the early stages of the COVID-19 pandemic. Production of distillers dried grains and soluble was 1,803,494 million tons, a jump of 28% on the month and 9% on the year. The USDA currently expects 4.95 billion bushels to be used for ethanol production this marketing year, with the next estimate out Mat 12th. There were no trades posted in the overnight electronic session, the May contract is set to expire tomorrow while the June contract settled at 2.340 and is currently showing no market with Open Interest at 20 contracts.

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