We kicked off the day with NFIB Business Optimism Index at 5:00 A.M., Fed Jefferson Speech at 7:30 A.M., Redbook YoY at 7:55 A.M., IBD/TIPP Economic Optimism at 9:00 A.M.,NY Fed Treasury Purchases 0 to 1 year at 9:30 A.M., Fed Williams Speech at 10:05 A.M., 3-Year Note Auction at 11:00 A.M., and API Energy Stocks at 3:30 P.M.

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On the corn front, the bears are in firm control. News from South America is Brazilian corn production estimate was trimmed with recent and upcoming dryness. Forecast over the weekend trended drier in Central Brazil. While Argentina is still seeing no meaningful rain until the second half of May. The complete absence of soil moisture is a big deal in the long run as wheat planting starts in late May/ early June.

Which adds to more bullish news but the state of the economy has trumped the bulls at this point which explains the bearish market participation. Ukraine grain inspections in Istanbul have been shut down for three days. The Ukraine argued that Russia started early and will not honor the deadline.  In the overnight electronic session the July corn is currently trading at 590 ½ which is 6 cents lower. The trading range has been 595 to 590.

On the Ethanol front Tim Spears with ABC57 covering South Bend, Elkhart and St. Joseph, reports an ethanol plant promises $230 million investment tax breaks. South Bend Common Council moves forward on tax breaks worth millions to draw a $230 million investment. German biofuel company bought South Bend Ethanol LLC and its facilities on Calvert Street this month with plans to modernize and expand facilities. Despite some neighbors speaking out against the plant during the council’s May meeting. The council approved a pair of tax abatements cumulatively worth upwards to $16.5 million. Verbio says the abatements will help it invest $230 million into new equipment, software, and construct ten additional buildings at the production facility over the next three years Along with the investment, the company said  61 employees would be retained while it adds engineering positions. There will be another vote on tax abatements at the council’s Mat 22^nd meeting. There were no trades or open interest in ethanol futures.

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