Russian Hackers 2 – U.S. New Administration 0. The Corn & Ethanol Report

We start off the day with MBA Mortgage Applications (28/May) and MBA 30-Year Mortgage Rate (28?MAY) at 6:00 A.M., Redbook YoY (29/MAY) at 7:55 A.M., IBD/TIPP Economic Optimism (JUN) at 9:00 A.M., Fed Evans Speech, Fed Bostic Speech and Fed Beige Book at 1:00 P.M., Dairy Product Sales at 2:00 P.M., API Energy Stocks at 3:30 P.M. and Total Vehicle Sales at 6:00 P.M.

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Just when we’re reopening from the COVID-19 lockdowns we have two cyber-attacks on the U.S., and many believe some are sandbagging the culprit or culprits in these two attacks that the first one on Colonial Pipeline disrupted the domestic flow of energy and now attacking JBS the World’s largest meat processing company. Now they are going after the food change. This is a matter of National Security, and these attacks should not go unabated, and those responsible should be dealt with swift and effective retribution. These three attacks cannot be swept under the rug any longer.

On the Corn front, the USDA released a strong good-to-excellent rating and said the corn crop is off to a better start than last year. 95% of the corn crop is planted and Brazil’s second corn crop estimate was cut again as yields hit a five-year low. Prices could also be tested as the JBS meatpacker plant will undoubtedly slow slaughter and the cattle being held back we will know at the check-out counter at the grocery store or even if you have it delivered. We are already seeing prices go higher as is with the price of corn alone that makes other commodities move higher as the use of corn, corn oil etc. is used in several other commodities one off-hand would not think of the residual impact. In the overnight electronic session, the July corn is currently trading at 698 ¾ which is 1 cent higher. The trading range has been 694 ¼ to 679 ¼.

On the Ethanol front, POET acquires Flint Hills’ ethanol business-boosting their capacity 40%. It is official the talks have ended, and POET is banking on U.S. ethanol profits in the future. We also have no groundbreaking news with the Supreme Court and the EPA and refiners to date. There were no trades posted in the overnight electronic session. The July contract settled at 2.460 and is currently showing no market with Open Interest at 20 contracts.

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