The Corn & Ethanol Report: Rains & Moderating Temperatures In The Forecast

We start off this busiest day of the week report wise Adv Durable Goods, GDP (Q1) and Jobless Claim at 7:30 A.M., Pending Home Sale YoY & MoM at 9:00 A.M., EIA Gas Storage at 9:30 A.M., EIA Energy Stocks, Fed Williams Speech and Kansas Fed Manufacturing Index at 10:00 A.M., 4-Week and *-Week Bill Auction at 10;30 A.M., 7-Year Note Auction and 154-Bill Auction at 12:00 P.M., followed by Dairy Product Sales at 2:00 P.M.

On the Corn front, the July contract settled at 320 ½ which was 1 ½ of a cent higher in yesterday’s action with tight trading ranges in the whole complex. Funds remain near or above record shorts as many concerns hound this market whether China will honor their trade commitments, overall exports, and global supplies this early in the game. We should start to see partly cloudy to clearer weather tomorrow but will see temperatures moderate to even below normal temps for May but throughout today stay warm and muggy as we expect rains all day in the Corn Belt. In the overnight electronic session, the July Corn is currently trading at 321 ½ which is 1 cent higher. The trading range has been 322 to 320 ¼.

On the Ethanol front, the USDA reported that Corn use for Ethanol falls 434 million in March. Corn for alcohol use and other consumer-use dropped 3% lower than in February and 6% lower than March 2019. The market is seeing some improving positive since March and with the summer driving season upon us and the easing on lockdowns which will help demand further, we do see some brighter spots than the USDA reminded us what we were thinking and going back then with all of the demand destruction. Iowa senators are still challenging and waiting for the Food and Drug Administration’s (FDA) response to their letter regarding sanitizers and ethanol plants. As soon as I have any news I will let you know. There were no trades posted in the overnight electronic session. The July contract settled at 1.114 and is currently showing 5 bids @ 1.092 and 2 offers @ 1.145 with Open Interest at 118 contracts.

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