High Gas Prices=Inflation Nation. The Corn & Ethanol Report 05/24/2022

We start off the day with Redbook YoY (21/May), S&P Global Composite Flash PMI (May) S&P Global Manufacturing PMI Flash (May) and S&P Global Services PMI Flash (May) at 8:45 A.M., New Home Sales (Apr), New Home Sales MoM (Apr), Richmond Fed Manufacturing Index (May), Richmond Fed Manufacturing Shipments (May) and Richmond Fed Services Index (May) at 9:00 A.M., Fed Chair Powell Speech at 11:20 A.M., 2-year Note Auction at 12:00 P.M. and API Energy Stocks at 3:30 P.M.

On the Corn Front Russia said nyet to the UN’s request to allow Ukraine exports, while US corn exports are down 17%from last year, however, US census exports are 266 million bushels higher than inpections.is coming in lower as concerns about abundant supply whacked America’s biggest cash crop. In the overnight electronic session the July corn is currently trading at 782 ¼ which is 4 cents lower. The trading range has been 787 to 780.

On the Ethanol Front with Memorial Day this weekend ethanol blending has increased as we officially start the summertime driving season. The pain at the pump will have consumers begging for any help to bring down prices. There were no trades or open interest in ethanol futures.

On the Crude Oil Front the WTI bears in control as the EU’s ban on Russian oil has more holes in it like Swiss Cheese and looks highly unlikely to work effectively as cargoes of Russian flagged ships climb to a new high funding the war with Ukraine. While China is the single most important buyer  in the global market, and with its battle with COVID is set to seriously damage both economic growth and oil demand for China, By May, analysts were predicting a one million barrel per day reduction in oil demand for China with no end in sight. In the overnight electronic session the July corn is currently trading at 11031 which is 2 tics higher. The trading range has been 11095 to 10861.

On the Natural Gas Front the Russian news took some premium off the market but I expect long-term In the overnight electronic session the June natural gas is currently trading at 8.673 which is 0.073 lower. The trading range has been 8.930 to 8.605.

Have A Great Trading Day!

Dan Flynn

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