More Bullish Fundamentals For Corn. The Corn & Ethanol Report

We started off the day with Redbook YoY (19/JUN) at 7:55 A.M., Existing Home Sales MoM (MAY), Existing Home Sales (MAY) and Richmond Fed Manufacturing Index (JUN) at 9:00 A.M., NY Fed Treasury Purchase TIPS 1 to 7.5 yrs. At 9:30 A.M., Fed Daly Speech at 10:00 A.M., 42-Day Bill Auction at 10:30 A.M., 2-Year Note Auction at 12:00 P.M., Fed Chair Powell Testimony at 1:00 P.M. and API Energy Stocks at 3:30 P.M.

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On the Corn front, Export Inspections are moving at a good clip for corn and soybeans. While corn was recorded 129.107 tons lower than last week the number was 175.602 tons higher than last year. On Crop Progress corn and soybean conditions continue to decline but soybeans were a little better than trade expectations. The USDA pegged the U.S. corn good-to-excellent rating at 65%. Trade expected 63% to 65% but that is below last week’s 68% and well below the five-year average of 71%. In the overnight electronic session, the July corn is currently trading at 656 ¼ which is 3 cents lower. The trading range has been 668 to 653 ¾.

On the Ethanol front, a new report said, India’s ethanol plan could drive sugar into a bull market which may change Brazil’s thinking of using more corn-based ethanol blends. While the U.S. and Brazil are expected to constrain ethanol output in the coming months. There were no trades posted in the overnight electronic session. The July contract settled at 2.460 and is currently showing no market with Open Interest at 20 contracts.

On the Crude Oil front, the July contract expires today and we also have the API data later in the day, while the market is coming in a little easier. There are some analysts that are predicting $100 crude oil prices which will be a pain in the pump. Tsvetana Paraskova with reports that U.S. Shale will not derail crude oil prices as OPEC has solid reasons it’s global supply will not be ruined by U.S. Crude Oil production. The ongoing restraint in drilling in the shale patch would make efforts of OPEC and its allies OPEC+ group to manage supply to the market a much easier task. Thanks Joe Biden. In the overnight electronic session, the August crude oil is currently trading at 7268 which is 44 points lower. The trading range has been 7336 to 7249.

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