Weather in the Corn Belt Furthers Plantings Delay. The Corn & Ethanol Report 04/25/2022

We start off the day with Chicago Fed National Activity Index (Mar) at 7:30 A.M., Dallas Fed Manufacturing Index (Apr) at 9:30 A.M., Export Inspections at 10:00 A.M., 3-Month & 6-Month Bill Auction at 10:30 A.M., and Crop Progress at 3:00 P.M.

On the Corn Front AgWeb reports on a big question. Can Corn hit $10 this year? Farmers and Traders are betting 90 million bushels it will. We have rainy and cooler than norm temps that will delay plantings again this week with no timetable when Mother Nature will spawn spring weather. We will be focused on weather and the export market in South America and the void left with Ukraine most likely out of the export market for now. With the July corn trading near 790, $10 corn does not seem impossible to fathom. And let’s not forget drought in North Dakota, Montana and Canada to add premium. In the overnight electronic session the July corn is currently trading 787 which is 2 cents lower. The trading range has been 795 ½ to 781.

On the Ethanol Front after President Joe Biden announced he is suspending a federal rule preventing the sale of higher ethanol blends which is an effort to bring down prices at the pump that spiked with the war in the Ukraine.  Anyone following the oil market knows crude, distillates and gasoline were sky-high before hostilities began. Sarah Beckman with WCNC Charlotte asked the question, does using higher ethanol blends save you money?  The sources with the answer were Patrick De Haan with GasBuddy, The US Department of Energy and AAA answer was a resounding No!  De Haan went on to say, “it’s not going to have an impact on people who fill up with regular gasoline,” De Haan went on to say, “it’s not a price impact, it is the availability of fuel, where it is available.” There were no trades or open interest in ethanol futures.

On the Crude Oil Front the market is showing it’s concern about lockdowns in China and the slowing of their economy. And what impact the world is having with Russia energy bans just as the Ukraine hit an oil and gas hub in Russia, now the Ukraine is showing it can take the offensive in this war protecting their country. We may have another Turnaround Tuesday with the API Energy Stocks and a little less negativity on the world. In the overnight electronic session the June crude oil is currently trading at 9721 which is 486 points lower. The trading range has been 10155 to 9570.

On the Natural Gas Front the market is showing support with cooler than norm temps in the northern tier of states and 80 degree temperatures in the south. We will be making a shift in temperatures which will mobilize storms and possible tornado activity from Texas to the Great Lakes. In the overnight electronic session the June natural gas is currently trading at 6.716 which is 0.063 higher. The trading range has been 6.844 to 6.471.

Have A Great Trading Day!

Dan Flynn

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