State of the Union- It’s the Economy & Mega-Inflation. The Corn & Ethanol Report 02/07/2023

We kickoff the day with Balance of Trade, Exports, Imports at 7:30 A.M., Redbook YoY at 7:55 A.M., IBD/TIPP Economic Optimism at 9:00 A.M., Fed Chair Powell Speech at 11:40 A.M., 3-Year Note Auction at 12:00 P.M., Fed Barr Speech at 1:00 P.M., Consumer Credit Change at 2:00 P.M., and API Energy Stocks at 3:30 P.M.

On the Corn Front we rallied going into the close in yesterday’s action. The March contract had an inside day with traders keeping their cards close to their vest as we head into tomorrow’s Crop Production USDA Supply/Demand and WASDE data. We have forecasts of hot & dry weather in Argentina this week. China has threatened retaliation for the US for downing the so-called weather research balloon. This should only add to market volatility. US corn Export Intentions were down again keeping pace for the marketing year well behind last year. The USDA said export inspections totaled 480,205 metric tons for the week ended Feb 2, down from 542,989 mt reported last week and 1.07 million mt at this time last year. In the overnight electronic session the March corn is currently trading at 677 ¼ which is 1 ¾ of a cent lower. The trading range has been 678 ½ to 675 ¾.

On the Ethanol Front Kemin Bio Solutions launches FermSaver for use in ethanol production. Kemin Industries, a global ingredient manufacturer that strives to sustainably transform the quality of life evert day for 80% of the world with its products and services, recently launched FermSAVER, a tea-extract product utilized during yeast formation for ethanol production, as part of its growing Kemin Bio Solutions portfolio. FermSAVER was developed to help reduce stress when yeast is exposed to excess heat generated during the summer months. Supplementation with FermSAVER has shown to improve ethanol production during periods of heat stress compared to yeast alone. “Managing heat during ethanol production is critical to any bioethanol facilities,” said Jason Ackerman, General Manager, Kemin Bio Solutions. “We are thrilled to introduce FermSAVER, which can give ethanol producers peace of mind during high-heat periods by helping to maintain productivity.” During Industrial formation, yeast generates excessive heat through normal metabolic processes. In the absence of cooling – and during summer months when chiller effectiveness is lower-yeast formation is significantly affected, resulting in reduced ethanol production. Ethanol manufacturing facilities have typically relied on cooling towers to reduce the negative consequences of heat generated during formation, but cooling towers may fail or become overwhelmed during periods of high heat. Ethanol futures remain in drydock.

Have A Great Trading Day!

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