Tight Supplies & Lack of Growth. The Corn & Ethanol Report 05/23/2022

We start off the day with Chicago Fed Activity Index (Apr) at 7:30 A,M., Export Inspections at 10:00 A.M., 3-Month & 6-Month Bill Auction at 10:30 A.M., Fed Bostic Speech at 11:00 A,M,, Cold Storage at 2:00 P.M. and Crop Progress at 3:00 P.M.

On the Corn Front the July corn settled a tad lower in Friday’s action but stayed inside Thursday’s trading range. With last weeks USDA report plantings were catching up in the eastern Corn Belt which is still below average. Cold weather is expected this week and all eyes are focused on the Dakota’s, Nebraska, Minnesota and Iowa. We do have Export Inspections and Crop Progress today which could set the tone for the week. In the overnight electronic session the July corn is currently trading at 783 ¼ which is 4 ½ cents higher. The trading range has been 785 ¼ to 780.

On the Ethanol Front farmers, politician and producers are pitching that ethanol brings down gas prices. It is no secret gasoline prices are through the roof and with summer around the corner, prices could climb higher. As a result, the cost of groceries and other goods are ticking up for hardworking families that are feeling the pinch. There were no trades or open interest in ethanol futures.

On the Crude Oil Front oil firms are have tight supplies heading into the summertime driving season. Geopolitical geographics having take a back seat as Biden is lifting sanctions on Venezuela. What an energy policy  were showing. In the overnight electronic session the July crude oil is currently trading at 11127 which is 99 points higher. The trading range has been 11196 to 10951.

On the Natural Gas Front Russia has cutoff natural gas exports to Finland as a symbolic move. It just means what we have been saying from the beginning that Russia would use energy as a weapon. In Chile solar power and wind energy is competing with natural gas. The market has backed off today with longs taking profits. In the overnight electronic session the June natural gas is currently trading at 7.988 which is 0.095 lower. The trading range has been 8.173 to 7.851.

Have A Great Trading Day!

Dan Flynn

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