Volatility YO-YO Continues. The Corn & Ethanol Report 07/19/2022

We kickoff the day with Building Permits (Jun), Housing Starts (Jun), Housing Starts MoM (Jun) and Building Permits MoM at 7:30 A.M., Redbook YoY (16/Jul) at 7:55 A.M., Fed Brainard Speech at 1:35 P.M., and API Energy Stocks at 3:30 P.M.

On the Corn Front US corn condition is holding steady. 37% of the crop is silking, is behind the five-year average of 48%. The crop conditions include, 3% very poor, 8% poor, 25% fair, 51% good and 13% excellent. A lot of corn is undergoing pollination across the Midwest this week and next.  Also the corn crop is shorter than normal. The reason some say is three weeks of dry weather that occurred early in the season, causing corn plants to “roll up” during the rapid growth period. In the overnight electronic session the September corn is currently trading at 598 ¼ which is 14 cents lower. The trading range has been 611 to 593 ¼.

On the Ethanol Front Red Trail Energy LLC located in Richardton, North Dakota begins carbon capture and storage. “After six years of research , development and investment Red Trail Energy is celebrating this historic moment in North Dakota and the United States history becoming the first facility permitted under state primacy to capture and store CO2. Our success establishes a trail for other industries in the state to follow,” said Gerald Bachmeier, CEO of Red Trail Energy. The ethanol futures remain in the doldrums with no activity.

On the Crude Oil Front tomorrow the August contract expires. Russia’s crude deliveries to China and India have plunged 30% from their wartime peak as concerns Asia can’t fully absorb Moscow’s shrinking oil market. The US market slumped in listless summer trading. In the overnight electronic session the September crude oil is currently trading at 9752 which is 190 points lower. The trading range has been 10024 to 9676.

On the Natural Gas Front is starting the day lower as well. Russia’s Gazprom declares a force majeure on some European gas buyers. This is a signal it intends to keep supplies capped, reinforcing Russia’s grip on the regions energy. This is forcing emergency gas rationing for EU countries, under crisis plan. In the overnight electronic session the August natural gas is currently trading at 7.213 which is 0.266 lower. The trading range has been 7.544 to 7.109.

Have A Great Trading Day!

Dan Flynn

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