March Madness All Hands On Deck. The Corn & Ethanol Report

At 5:00 A.M. the NFIB Business Optimism Index came out at 104.5 for February which was right on the money with the consensus and better than the previous 104.3. At 7:55 A.M. we have Redbook YoY and MoM. At 11:00 A.M. we have Crop Production USDA Supply/Demand and WASDE report. At 12:00 P.M. we have the 3-Year Note Auction and later the API Energy Stocks at 3:30 P.M. and President Trump will address the nation at 4:30 P.M. On the Corn front farmers were loving Diesel prices as the Corn suffered through this black swan event. The coronavirus and the Saudi assault on U.S. energy have the markets all over the place and we are starting to see the markets square up. The same could be said in the Grain complex as prices are adjusting after yesterdays debacle and we have the Grain reports at 11:00 A.M. In the overnight electronic session the May Corn is currently trading at 376 ¼ which is 3 ½ cents higher. The trading range has been 377 to 374.

On the Ethanol front, there were no trades posted in the overnight electronic session. There are fears that Ethanol exports and margins will drop as the shock and awe of prices crushed in yesterday’s action The April contract settled at 1.210 and the market is currently showing 1 bid @ 1.208 and 1 offer @ 1.229 with Open Interest at 313 contracts.

On the Crude Oil front, the Saudi’s sucker punch to the U.S. Shale market will completely backfire and only strengthen the U.S. export market as the U.S. will be seen as a reliable gauge of fair market prices. In the overnight electronic session the April Crude Oil is currently trading at 3378 which is 265 points higher. The trading range has been 3460 to 3020.

On the Natural Gas front, cheap prices may have started this market to rally. What is store for this market? I throw my hands in the air. It is oversold but is the bottom in? Especially in shoulder season? In the overnight electronic session the April Natural Gas is currently trading at 1.843 which is 6 ½ cents higher. The trading range has been 1.865 to 1.794.

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