The Corn & Ethanol Report: Good Morning And Welcome Back

We start off the morning with Chicago Fed National Activity Index (Apr) at 7:30 A.M., S&P/Case-Shiller Home price (YOY & MoM-Mar) and Home Price Index (MoM-Mar) at 8:00 A.M., Consumer Confidence and New Home Sales at 9:00 A.M., Dallas Fed Manufacturing Index at 9:30 A.M., Export Inspections at 10:00 A.M., 3 & 6-Month Bill Auction at 10:30 A.M., Fed Kashkari Speech, 2-Year Note Auction and 42-Day Bill Auction at 12:00 P.M. and Crop Progress at 3;00 P.m.

On the Corn front, we are stepping out trading a notch higher early in this back to the work holiday weekend. Oversold could be the word of the day with everyone on the street knows the funds are short. This spike could be short-lived with news of China auctioning off their large old crop supply. It may also indicate the country is in a cash crunch with U.S.-China trade deal and politics in their hemisphere. The Chinese have decided not to release their GDP data and with the Hong Kong and Taiwanese issues only seems to suggest they have problems at home with the trade deal and the coronavirus issues. Imports and exports loom large and with excellent growing weather in the U.S. This market will see profit-taking with the commercials and funds selling at every opportunity. In the overnight electronic session, the July Corn is currently trading at 320 ½ which is 2 ½ cents higher. The trading range has been 320 ¾ to 316 ½.

On the Ethanol front, we are seeing rollover activity from June to July contracts. The story in this market is the recovery in the Crude Oil market. Demand picking up is a welcome sign as this industry is taking baby steps to get back up on its feet. As we head into the summer driving season and demand for corn will continue to question this market's recovery, we are at least seeing promising days ahead. In the overnight electronic session, the July Ethanol is currently trading at 1.108 which is 0.033 higher. The market is currently showing 1 bid @ 1.091 and 1 offer @ 1.115. The trading range has been 1.091 to 1.071 with 2 contracts traded and Open Interest at 262 contracts.

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