Mixed Signals In Corn. The Corn & Ethanol Report

We started off the day with Building Permits MoM (APR), Building Permits (APR), Housing Starts MoM (APR), Housing Starts (APR) at 7:30 A.M., Redbook YoY (15/MAY) at 7:55 A.M., 52-Week Bill Auction and 42-Day Bill Auction at 10:3 A.M., and API Energy Stocks at 9:30 A.M.

green-leafed plants

Image Source: Unsplash

On the Corn Front prices jumped after the USDA said planting was behind market expectations. It said U.S. farmers 80% of their intended corn acres were planted as of Sunday, up from 67% a week ago and the five-year average of 68%. Analyst polled by Reuters expected a range from 79% to 88%. Private exporters reported a sale of 1.7 million tons of corn to China for delivery in the 2020/21 marketing year. It was the fourth corn sale of more than 1 million tons to China this month. Another private group estimated that 2021 acres could increase 5 to 6 million acres above the USDA March report. This led to very active fund selling. This will come down to actual plantings, exports, and weather no matter how many acres are planted. In the overnight electronic session, the July corn is currently trading at 664 ¾ which is 12 ¼ cents higher. The trading range has been 666 to 653 ½.

On the Ethanol Front Nebraska’s ethanol production is almost reaching pre-pandemic levels. Nearly every plant is back online after many were shut down this time a year ago. Pam Miller head of Renewable Fuels Nebraska said, “most plants are back up to full production, which is somewhere near 2.5 billion gallons a year that we produce, second largest producing state in the country.” Miller continued, “It’s great to be back. It’s great to be running these plants at full speed making a wonderful product.” There were no trades posted in the overnight electronic session. The June ethanol settled at 2.340 and is currently showing no market with Open Interest at 21 contracts.

On the Crude Oil Front shortages of gasoline are still stifling the East Coast. With some analyst predicting product may be scarce going into the Memorial Day weekend, the official start of the summertime driving season. We will see a mad dash for crude oil and gasoline prices. In the overnight electronic session, the June crude oil is currently trading at 6635 which is 8 tics higher. The trading range has been 6701 to 6625.

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