Trading Weather. The Corn & Ethanol Report
We kicked off the day Export Sales and Wholesale Trade at 7:30 A.M., NY Fed Treasury Purchases 22.5 to 30 yrs. At 9:30 A.M., and Baker Hughes Oil & Total Rig Count at high Noon.
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On the Corn front, we traded lower in yesterday’s action as the Midwest is poised for rains and cooler temperatures over the weekend while the West and Plains are going to have an excessive heat dome. Depending on what side of the coin you’re on some analysts and traders believe the western Midwest can grow enough to cover shortages. However, we are talking some 18.1 million acres as North Dakota, South Dakota and Minnesota is dry as a bone and in a severe drought. Brazil is still getting even more negative numbers on their crop. Down the road carryover and exports will be the name of the game This morning’s weekly Export Sales should shine a light that may get buyers more aggressive.
On the Ethanol Front production is up while stocks hit multi-week lows. The EIA reported production averaged 1.067 million barrels a day, up 9,000 barrels on the week and 153,000 from last year when the pandemic was in full stride. Stocks declined for the first time in six weeks to 21.149 million barrels, which was a decrease of 423,000 barrels from the previous week, but an increase of 529,000 from last year.
The USDA said the Midwest ethanol prices were mostly higher last week and the next report on corn for ethanol use will be Monday.
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