Recession and Doubt About the Economy Is In Today’s Markets. The Corn & Ethanol Report 04/11/2022

We start off the day with Fes Bostic and Fed Bowman Speech at 7:30 A.M., Consumer Inflation Expectations (Mar) and Export Inspections at 10:00 A.M., #-Month & 6-Month Bill Auction at 10:30 A.M., Fed Evans Speech at 11:40 A.M., 3-Year Note Auction at 12:00 P.M. and Crop Progress at 3:00 P.M.

On the Corn Front the futures traded higher but off session highs on Friday. Fresh money came in and bought the market after the USDA, US and WASDE corn numbers were inline with estimates, and forecasts of a dry west-Midwest and a wet east-Midwest. We are expecting snow and blizzard like conditions across the Plains and parts of the Midwest. This is early in the planting season but keep the fields wet in the corn-belt. In the overnight electronic session the May corn is currently trading at 774 ¾ which is 6 cents higher. The trading range has been 775 ½ to 765 ¾.

On the Ethanol Front the USDA increased its forecast for 2021-22 corn use in the WASDE report. Ending stocks was unchanged and season average of farm prices increased. The USDA lowered its forecast for feed and residual use by 25 million bushels. There were no trades or open interest in ethanol futures.

On the Crude Oil Front we seem to be lifting wartime premium with a recession looming. Interest Rates and Stocks are reflecting that this morning. Also with a hawkish Fed and many manufactured crisis’ which could hold goods and services hostage. In the overnight electronic session the May crude oil is currently trading at 9451 which is 375 points lower. The trading range has been 9852 to 9293.

On the Natural Gas Front another winter storm will give us another slap with accumulations across the Plains and parts of the Midwest. In the overnight electronic session the May natural gas is currently trading at 6.570 which is 0.292 higher. The trading range has been 6.614 to 6.247.

Have A Great Trading Day!

Dan Flynn

Questions? Ask Dan Flynn today at 312-264-4374