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 start off the day with Redbook YoY (19/Mar) at 655 A.M., Richmond Fed Manufacturing Index (Mar), Richmond Fed Manufacturing Shipments Index (Mar) and Richmond Fed Services Index (Mar) at 8:00 A.M., Fed Williams Speech at 8:30 A.M., 52-Week Bill Auction at 9:30 A.M., Fed Daly Speech at 12:00 P.M., API Energy Stocks at 3:30 P.M. and Fed Mester Speech at 4:00 P.M.
On the Corn Front the Russians scorch earth policy is showing weakness but is bringing further doubt on wheat exports and whether the Ukraine can even grow corn in the growing season. Another fear is navigating product in the Black Sea. We will not know if the ground will be able to have any strength if the Ukraine can even grow the crop. The corn and grain complex had a nice rally yesterday with continued dry weather in South America could put a another weak export market overall. In the overnight electronic session the May corn is currently trading at 755 ¼ which is 1 cent lower. The trading range has been 761 to 751 ½.
On the Ethanol Front farmers are now chiming in to say this is a good time to increase the ethanol blend in gasoline. Patrick Kirchofer, manager of the Peoria County Farm Bureau in Illinois, told The Center Square that using a higher percentage of ethanol in gasoline makes lots of sense. “Ethanol is a clean-burning renewable fuel that is made from corn,” Kirchofer said. Currently gas stations sell a 10% blend ethanol and Kirchofer said they would like to see an increase of 15% to 20%. We once again have zero action in ethanol futures.
On the Crude Oil Front today is Last Trading Day in the April contract. The little evil man is acting like a cornered rat which make this war on Ukraine all the more doubt of an easy peace. The Russians walked away from the Iran Nuke Talks that had been conducted solely by Iran and Russia. Now Iran has no one to negotiate with. Fed talking hawkish today and yesterday further talks would be turning the ultimate blind eye. Whispers of builds in crude because of SPR releases. The market is still trading risk premium and may not even be fazed by the inventories. In the overnight electronic session the May crude oil is currently trading at 10937 which is 61 points lower. The trading range has been 11335 to 10710.
On the Natural Gas Front the market is higher on risk of the huge storm in the south that could bring snow to the Texas Panhandle and storms and tornadoes could shake up the risk. If there is demanded destruction with these storms we could be down hard tomorrow. In the overnight electronic session the April natural gas is currently trading at 5.115 which is 0.217 higher. The trading range has been 5.197 to 4.877.
Have A Great Trading Day!
Dan FlynnQuestions? Ask Dan Flynn today at 312-264-4374