Unemployment Day. The Corn & Ethanol Report 02/03/2023

We have the Unemployment number that rears its ugly head in this economy that has already reared its ugly head. Will the tech layoffs could show up in this number. As we move into the new election cycle it should be a reminder there are consequences for not voting or continuing to pick the wrong horse. Remember to vote.

We kickoff the day with Employment Rate, Nonfarm Payrolls, Participation Rate, Average Hourly Earnings MoM & YoY, Average Weekly Hours, Government Payrolls, Manufacturing Payrolls, and Nonfarm Payrolls Private at 7:30 A.M., S&P Global Composite PMI Final and S&P Global Services PMI Final at 8:45 A.M., ISM Non-Manufacturing PMI, ISM Non-Manufacturing Employment, ISM Non-Manufacturing New Orders, ISM Non-Manufacturing Prices, and ISM Non-Manufacturing Business Activity at 9:00 A.M., Baker Hughes Oil & Total Rig Count at 2:00 P.M.

On the Corn Front the Employment number showed we added 517,000+ jobs and that leaves the question of other moves the FED may make other moves increasing already wild volatility. We have finally had a strong Export Sales report, including new sales to China. Wednesday nights strength in the markets were attributed to a weaker US dollar and Brazil concentrating on domestic consumption backing of corn exports until their second corn crop harvest. In other news Biden officials pressed on Mexico Trade Issue at a Farm Bill Hearing. Senator Chuck Grassley (R-Iowa) said, “when it comes to agriculture trade, the concern I hear from Iowans is access to Mexico’s corn market, Grassley continued, “with 90% of the corn acreage in the United States being planted to biotech seeds and Mexico being the number one purchaser of US corn, I’m concerned that this decree is not being met with the urgency that it deserves,” he said, referring to Mexican President Andres Manual Lopez Obradors decree that would phase out imports of GMO corn in 2024-extended to 2025 under a compromise Lopez Obrador’s administration recently offered, but which the US rejected. In the overnight electronic session the March corn is currently trading at 672 ¾ which is 2 ½ cents lower. The trading range has been 674 ¾ to 671 ½.

On the Ethanol Front the USDA expects no actions under the Feedstock Flexibility Program. The USDA’s Commodity Credit Corp. announced on Jan. 27 that it does not expect to purchase and sell sugar under the Feedstock Flexibility Program for crop year 2022, which runs through Oct. 1< 2022 through Sept 30, 2023. The CCC is required to announce quarterly estimates of sugar to be purchased for the FFP based on crop and consumption forecasts. Under Federal law, processors of sugar beets and domestically grown sugarcane can obtain USDA loans when the harvest begins. Still zero open interest in ethanol futures.

Have A Great Trading Day!

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