Another Volatile Start. The Corn & Ethanol Report 05/02/2022

We start off the month with S&P Global Manufacturing PMI Final (Apr) at 8:35 A.M., ISM Manufacturing PMI (Apr), Construction Spending MoM (Mar), ISM Manufacturing Employment (Apr), ISM Manufacturing New Orders (Apr) and ISM Manufacturing Prices (Apr) at 9:00 A.M., Export Inspections at 10:00 A.M., 3-Month & 6-Month Bill Auction at 10:30 A.M., Cotton System, Fats & Oils and Grain Crushings at 2:00 P.M., and Crop Progress at 3:00 P.M.

On the Corn Front it is the same old story with different suspects since coming in on Monday and the China lockdowns spook the market. We would hope for a Turnaround Tuesday but another element spooking the market is the FOMC meeting tomorrow and Wednesday with traders questioning how high the FED will raise rates which will garner even more volatility. I still stick behind $10 corn and expect a wild ride this planting and growing season. In the overnight electronic session the July corn is currently trading at 805 ½ which is 8 cents lower. The trading range has been 808 ½ to 800 ¼.

On the Ethanol Front President Joe Biden’s plan to reduce the price of gas by allowing the sale of higher-ethanol fuel this summer may make corn farmers and their elected representatives happy. But the move also irked environmentalists who see ethanol as a climate-change villain. I see the real villain to be higher energy prices and hyper-inflation we have not seen in 40 years. There were no trades or open interest in ethanol futures.

On the Crude Oil Front another manic Monday where traders wonder if Germany and Hungary are committed to the Russian oil ban. Tomorrow we have the API Stocks which may have a bullish twist with all the news and hedge funds and algorithm funds stepping on the pedal on every headline. In the overnight electronic session the June crude oil is currently trading at 10079 which is 390 points lower. The trading range has been 10516 to  10028.

On the Natural Gas Front this market is higher today after the volatility and last week’s selloff in this bullish market. The reason we are higher is weather in the lower 48 and the market for exports tingling traders vibes. In the overnight electronic session the June natural gas is currently trading at 7.392 which is 0.148 higher. The trading range has been 7.553 to 7.219.

Have A Great Trading Day!

Dan Flynn

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