Dan Flynn is the writer of The Corn & Ethanol Report, a daily market letter covering grains, energies, and various global issues that are the driving force and backbone of the commodity markets. Contact Mr. Flynn at (312) 264-4374
We kickoff the day with Goods Trade Balance Adv (MAR) and Wholesale Inventories MoM Adv (MAR) at 7:30 A.M., Redbook MoM & YoY at 7:55 A.M., S&P/Case-Shiller Home Price MoM & YoY at 8:00 A.M., Consumer Confidence (APR) and Richmond Fed Manufacturing Index (APR) at 9:00 A.M., 2-Year FRN Auction and 43 Day Bill Auction at 10:30 A.M., 7-Year Note Auction at 12:00 P.M., API Energy Stocks at 3:30 P.M. and FOMC today.
This ahead of tomorrows GDP and Fed decision and stack in Earnings on Thursday. On the Corn front Iowa is pretty much done with plantings with Illinois ahead of the average pace. The corn futures traded lower in yesterdays action with demand destruction in ethanol but also in feed for livestock as we will see the beef and pork industries are just as vulnerable as the sharp stop in this once vibrant economy has come to a shocking standstill with this pandemic. In the overnight electronic session the May Corn is currently trading at 307 ¾ which is 2 ¼ cents higher. The trading range has been 308 ½ to 304.
On the Ethanol front, American Coalition for Ethanol CEO Brian Jennings requested President Trump demonstrate his leadership in support of America’s farmers and the renewable fuels industry by directing his Cabinet to provide a much-needed boost to ethanol producers and rural America in response to the mounting economic harm as the sudden and severe drop in ethanol demand, “More than half of U.S. ethanol production capacity is offline, high skill jobs are being shed, livestock and food processing customers are facing supply disruptions, and our members’ working capital is vanishing. Ethanol use could fall by more than 3 billion gallons in 2020, eliminating the market for at least a billion bushels of corn”. In the overnight electronic session there were no trades posted. The June contract settled at 0.947 and is currently showing 1 bid @ 0.935 and 1 offer @ 0.959 with weak Open Interest at 244 contracts.
On the Crude Oil front the market was trading 100 lower early but rallied to trade 40 points higher, only to once again tumble-down the slippery slope of demand and storage concerns. The June contract is currently trading at 1111 which is 167 points lower. The trading range has been 1318 to 1007.
On the Natural Gas front it is Last Trading Day on the May contract. The market found some support in shoulder season with unseasonable colder weather on the east coast. Otherwise it is the same old song, stop production, there no other place to store if we can’t move it down the pipeline. In the overnight electronic session the June contract is currently trading at 1.981 which is 6 ½ cents higher. The trading range has been 1.991 to 1.884.
Have a Great Trading Day!