Mother Nature And Plantings. The Corn & Ethanol Report

We started off the day with Unemployment and Wholesale Trade at 7:30 A.M., ISM New York Index at 8:45 A.M., Baker Hughes Oil & Total Rig Count at 12:00 P.M. and Consumer Credit at 2:00 P.M.

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On the Corn front, the weather has some analysts calling for a Mother’s Day massacre. Meaning 4 out of the last 5 years rain and cold weather slowed plantings. According to Ken Ferrie, Farm Journal Field Agronomist, and owner of Crop Tech Consulting, near Heyworth Il. He made his point that we had a green light for planting lately, but I am changing it to yellow. The current weather outlook until next Friday has temperatures dipping into the ’40s every night. That means farmers can anticipate few if any Growing Degrees Units (GDU’s) which is a poor scenario especially for newly planted corn, which is vulnerable to seed chilling. The corn rock and rolled again yesterday and talk of $8 corn is looking like a reality soon. In the overnight electronic session, the July corn is currently trading at 726 ¼ which is 7 ½ cents higher. The trading range has been 728 ¾ to 718 ¾.

On the Ethanol front, prices are relatively cheap and with China’s a purchasing the product has Mid-West farmers plowing through Biden’s electric-vehicle push. The farmers are demanding that biofuels be key in Biden’s climate plans. It is clear the president is focused on electronic vehicles, and it is bad enough that ethanol and refineries are fighting, and now we have another fight brewing, Stay Tuned. There were no trades posted in the overnight electronic session. The June contract settled at 2.340 and is currently showing no market as Open Interest remains at 20 contracts.

On the Crude Oil front, prices are being pressured on worries of the pandemic surge in India. Even with big draws on inventories we are still setting the stage for a weekly gain. We’re starting out weaker in the market, and the question is, do you want to be short going into the weekend? We could see short covering in today’s action. In the overnight electronic session, the June Crude Oil is currently trading at 6458 which is 13 points lower. The trading range has been 6524 to 6437.

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