More Frost Possible In Parts Of The Corn Belt. The Corn & Ethanol Report

We kicked off the day with ISM New York Index (APR) at 8:45 A.M., Consumer Inflation Expectations (APR), and Export Inspections at 10:00 A.M., 3-Month, and 6-Month Bill Auction at 10:30 A.M., Fed Evans Speech at 1:00 P.M. and Crop Progress at 3:00 P.M.

green grass

Source: Unsplash 

On the Corn front, we are easing off 8-year highs heading into Wednesday’s USFA Supply/Demand report. Chinese importers bought 1.36 million tons of U.S. corn on Friday according to the USDA. Traders will be watching the demand picture. Weather forecasts had frost predicted last night and it was unseasonal cold last night, and forecasters expect two more nights of it in certain growing areas. Any frost damage with today’s Export Inspections could show more demand and a crimp in supplies and that will juice demand were buying for product will see several new destinations. When product is scarce buyers want in at a larger scale than they normally would. It is like the cabbage patch doll or any other toy fad around Christmas, you have to get one for each kid you have and then there are shortages. Traders are also watching with high corn prices that could transfer more buying to animal feed from wheat. South Korea’s Feed Leaders Committee (FLC) purchased 60,000 tons of animal feed wheat expected to be sourced from the Black Sea region in a private deal. In the overnight electronic session, the July corn is currently trading at 725 which is 7 ¼ cents lower. The trading range has been 730 ¾ to 721 ¼.

On the Ethanol front, the market is quiet with the Supreme Court debating the ethanol war between farmers, oil, and the Environmental Protection Agency (EPA) powers and authority over the two because they were appointees and not voted into office. There may be a wait on this outcome and Ethanol is waiting on Wednesday USDA report data. There were no trades posted in the overnight electronic session. The June contract settled at 2.340 and is currently showing no market with Open Interest remaining at 20 contracts.

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