Volatility Reigns. The Corn & Ethanol Report 04/28/2022

We start off the day with Exports Sales, GDP Growth Rate QoQ Adv Q1,GDP Price Index QoQ Adv Q1, Initial Jobless Claims (23/Apr), Jobless Claims 4-Week Average (23/Apr), PCE Prices QoQ Adv Q1, Real Consumer Spending QoQ Adv Q1, GDP Dales QoQ Adv Q1, Continuing Jobless Claims (16/Apr) and Core PCE Prices QoQ Adv Q1 at 7:30 A.M., EIA Natural Gas Storage at 9:30 A.M., Kansas Fed Composite Index (Apr) and Kansas Fed Manufacturing Index at 10:00 A.M., 4-Week & 8-Week Bill Auction at 10:30 A.M. and 7-Year Note Auction at 12:00 P.M.

On the Corn Front the market is moving higher on solid fundamentals. The rally continued as China was asking about export prices for July-August. That is just a little reminder of the void the U.SD. market must fill and we don’t even have any strong plantings due to weather. In the overnight electronic session the July corn is currently trading at 815 ¼ which is 3 cents higher. The trading range has been 819 ¾ to 8121 ¼.

On the Ethanol Front production was up 1.7% from last week and up 1.9% from last year. Stocks were down 1.5% from last week but was up 21% from last year. There were no trades or open interest in ethanol futures.

On the Crude Oil Front the market remains volatile as the Ukraine War continues on. Doubts over OPEC will stay compliant as the market braces for higher prices. The market has calmed down since the latest break was due to the China lockdown news which has been priced into the market. In the overnight electronic session the June crude oil is currently trading at 10206 which is 4 tics higher. The trading range has been 10305 to 10013.

On the Natural Gas Front the market is giving some weather premium back as more seasonal weather is expected next week. Today we have the EIA Gas Storage and the Thomson Reuters poll with 14 analyst participating expect injections ranging from 20 bcf to 50 bcf with the median 38 bcf. This compares to the one-year injection of 53 bcf and the five-year average injection of 78 bcf. In the overnight electronic session the June natural gas is currently trading at 7.046 which is 0.293 lower. The trading range has been 7.422 to 7.027.

Have A Great Trading Day!

Dan Flynn

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