We kicked off the day with Export Sales, Initial Jobless Claims, Jobless Claims 4-Week Average, and Continuing Jobless Claims at 7:30 A.M., Wholesale Inventories MoM at 9:00 A.M., EIA Natural Gas Storage at 9:30 A.M., 15-Year & 30-Year Mortgage Rate at 11:00 A.M.

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On the Corn Front we have expected weak Export Sales and we are still gauging the overall numbers. Another key to this market is weather and yields. As we head into tomorrow’s WASDE report, will the data reflect any damage done by the smoke and wildfires. Granted we are in the early part of the growing season, we still have fears from the haze and smoke that will impact crops, especially corn. The smoke will most likely lower temperatures and reduce solar radiation. Sunlight is critical to photosynthesis that will make the stalk and roots stronger to feed and create good crop yields. The concerns at the moment is how long the fires last and the smoke moves over the states and moving into the heart of the Corn Belt. This photosynthesis shortage will cause reduced sunlight intensity, increased sunlight diffusion, and increased ozone (03) levels. And with this cloud cover and no rains is not a promising formula for good-to-excellent or even good yields. In the overnight electronic session the July corn is currently trading at 603 ¾ which is a ½ of a cent lower. The trading range has been 604 to 595 ¼.

On the Ethanol Front Jennifer Bjorhus with the Star Tribune reports a western Minnesota ethanol plant pollution violations led to a $250 thousand fine. The settlement was voluntary. There was a beer mash spill and other violations which the company decided to make a leadership change and also agreed to train its staff and hire consultants to conduct annual environmental audits and install cameras to detect spills among other things. Maybe the Environmental Protection Agency (EPA) should take a look at this playbook, as if they had a part in this settlement. They should remember the debacle they caused in 2015 with the dormant Gold King Mine that accidentally caused a spill of toxic waste causing three millions gallons of chemical-laced orange sludge to flow into the Animas River and causing an environmental crisis. Again this appointed government body caused this mess affecting the Colorado and San Juan Rivers and the states of Colorado, New Mexico, Arizona, and Utah. And who’s behind the wheel? There were no trades or open interest in ethanol futures.

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