Doubts In Corn Marketplace. The Corn & Ethanol Report 02/10/2023

We kickoff the day with Michigan Consumer Sentiment Prel, Michigan 5-Year Inflation Expectations Prel,  Michigan Consumer Expectations Prel, Michigan Current Conditions Prel, and Michigan Inflation Expectations Prel at 9:00 A.M., Fed Waller Speech at 11:30 A.M., Baker Hughes Oil & Total Rig Count at 12;00 P.M., Monthly Budget Statement at 1:00 P.M., and Fed Harker Speech at 3:00 P.M.

On the Corn Front the market traded lackluster and sold off on the close and made new lows after Wednesday’s reports. Weak export markets continue to cast doubts on the market. The March contract had an outside day down, closing at its lowest level in 3-weeks. China was the largest buyer of Brazilian corn in Jan 23 with 985 thousand tons. Brazilian corn bought by China will now exceed 2.1 million tons since approving from the South American country in November The USDA WASDE report raised Brazil export forecast to 50 mmt surpassing the US 48.9 mmt. With corn  settling 8 cents lower. We may see sideways volatile moves ahead of the acreage forecast data. In the overnight electronic session the March corn is currently trading at 670 ¼ which is a ½ of a cent lower. The trading range has been 671 ¼ to 669 ¼.

On the Ethanol Front Midwest lawmakers ask Biden to make ethanol-heavy fuel available year round. Dozens of bipartisan lawmakers representing Midwestern states continue to call on the Biden administration to permit the ethanol-heavy fuel. The demand centers around E15, the fuel blend that contains 15% ethanol that has long been subject to restrictions on its sale during the summer months. Last year, amid spiraling gas prices following Russia’s invasion of Ukraine, the Biden administration issued a waiver suspending the federal rule that prevents such sales. Eight Midwestern governors have petitioned the Environmental Protection Agency (EPA) to permanently end the seasonal limitations. In a letter yesterday, 10 senators and 21 House members representing both parties called EPA Administrator Michael Regan to grant the request. The Clean Air Act allows the EPA to waive some fuel blending restrictions. The governors first made the request in Mid-2022. This story should have some more twists as we gear up for the 2023 travel season. There were no trades or open interest in ethanol futures.

Have A Great Trading Day!

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