A Lot Of News To Digest This Trading Day - The Corn & Ethanol Report

We started off the day with MBA Mortgage Applications for July 10 coming in at 51%, versus the previous 2.2%, and the MBA 30-Year Mortgage Rate for July 10 coming in at 3.19%, versus the previous 3.26%.

Other notable events include Export & Import Prices YoY & MoM and NY Empire State Manufacturing Index at 7:30 A.M., Capacity Utilization, Industrial & Manufacturing Production at 8:15 A.M. EIA Energy Stocks at 9:30 A.M., NOPA Crush and Fed Harker Speech at 11:00 A.M., Fed Beige Book at 1:00 P.M., and Dairy Product Sales at 2:00 P.M.

On the corn front, the market is playing the weather market, which, for the moment, is pressuring a bullish USDA Crop Progress number. And when we thought the deal was dead with China, they came in and made their largest purchase of U.S. corn on record.

The USDA Foreign Ag Services said Beijing bought 1.762,000 tons of U.S. corn for delivery during the 2020/2021 marketing year, following up on last weeks sale of 1,365,000 tons as China tries to meet Phase One of trade deal purchase obligations and hit the World Trade Organization’s low-tariff quota of 72 million tons of corn imports from any country. The previous largest China purchase of U.S. corn was 1,450,000 tons in 1994.

The next Crop Production USDA Supply/Demand estimates will be on Wednesday, August 12. John Perkins with Brownfield Ag News For America supplied the data. The market still seems rather ho-hum on the China news, and although trade is quick, the market is not putting on any major gains with the December contract currently trading at 373 ¾, which is unchanged. The trading range has been 336 ¼, to 332 ½.

Some traders see the rising tensions between Beijing and Washington as a reason that China could cancel their purchases. It has been done before, and we will look at tomorrow's Export Sales overall data.

On the ethanol front, the plunging in corn futures pushed ethanol to crush margins higher, and with all of trade news whirling around in the energy and grain sector, ethanol investors and traders will be looking for revenue profits that are much needed in this industry after surviving a big game changer that really started before March.

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