The Corn & Ethanol Report: Corn Bounces Back In A Big Way

We start off the day with Personal Income MoM (APR), Personal Spending MoM (APR), Wholesale Inventories MoM Adv (APR), Goods Trade Balance Adv (APR), PCE Price Index MoM & YoY (APR), Core PCE Price Index MoM & YoY (APR) at 7:30 A.M., Chicago PMI at 8:45 A.M., Michigan Current Conditions Final (MAY), Michigan Consumer Expectations Final (MAY), Michigan 5-Year Inflation Expectations Final (MAY), Michigan Consumer Sentiment Final (MAY) and Michigan Inflation Expectations Final (MAY) at 9:00 A.M., Baker Hughes Oil and Total Rig Count at 12:00 P.M. and President’s FY 2022 Budget at 1:00 P.M.

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On the Corn front, the comeback was fast with the July corn settling limit up. It was a rude awakening to some that the top is far from being in just as acreage and yields have yet to be precisely counted. China will resume buying and if prices continue upward and they feel the bottom is in they will get even more aggressive in their purchases. The change in the weather with 50-degree temperatures and rain in parts of the Corn Belt will not be conducive in wrapping up plantings and most likely the rain won’t reach the places so much in need. In the overnight electronic session, the July corn is currently trading at 666 ½ which is 2 cents higher. The trading range has been 672 ¾ to 664 ½.

On the Ethanol front no news from the Supreme Court on waivers to refineries and the EPA’s authority to authorize as much. The market is waiting for the decision to be handed down that was expected at the latest today, but this may continue into the next couple of weeks. There is no other real news to report other than South Bend Firefighters' response to an ethanol plant fire two days ago. There were no trades posted in the overnight electronic session. The June ethanol settled at 2.350 and is currently showing no market with Open Interest at 21 contracts.

On the Crude Oil front, we punched through $67 a barrel. Could we see another breakout rally for the market as not too many traders would like to carry short positions going into the long weekend, especially in this political environment? With funds given to Iran so she could retool her proxies with weaponry and stir up trouble and problems in the Middle East. That raises the risk factor when your moving tankers through hostile regime waters. This would have been lesser of risk except we had the closure of the Keystone Pipeline XL earlier in the year and pressure being applied to Big Energy Companies which makes it more of a challenge to have gasoline to move planes, trains, and automobiles, and keep trucking rolling. In the overnight electronic session, the July crude oil is currently trading at 6724 which is 39 points higher. The trading has been 6745 to 6674.

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