Look Out Below Funds Big Sellers. The Corn & Ethanol Report 03/01/2023

We kickoff the day with MBA 30-Year Mortgage Rate, MBA Mortgage Market Index, MBA Mortgage Refinance Index, MBA Purchase Index and MBA Mortgage Applications at 6:00 A.M., S&P Global Manufacturing PMI Final at 8:45 A.M., ISM Manufacturing PMI, ISM Manufacturing Employment , ISM Manufacturing New Orders, ISM Manufacturing Prices and Construction Spending MoM at 9:00 A.M.,

EIA Energy Stocks 9:30 A.M., 17-Week Bill Auction at 10:30 A.M., Cotton System, Dairy Products Sales and Fats & Oils at 2:00 P.M.

On the Corn Front massive fund selling kept the bulls at bay with a 13 ¼ cents break in yesterday’s action. The market is waiting for a dead cat bounce as the grain complex has been pummeled over the last week. Even the market will look to who can supply the global demand and exports could push US exports. At the moment US exports are dismal compared to the five-year average even discounting the surge of the export market with China. Things will change when price for feed and human consumption will dominate with tight global supplies. In the overnight electronic session the May corn is currently trading at 630 ½ which is a ¼ of a cent higher. The trading range has been 635 to 630 ¼.

On the Ethanol Front  the EIA reports ethanol volumes continue to recover from the pandemic blues. The Biden administration is expected to approve a rule that would expand sales of gasoline with higher blends in certain US MIDWEST states. The rule making is not to take effect until the summer of 2024 sources said. Too little too late. The CBOT ethanol futures continue to show zero trades and open interest. Any doubt in traders mind. The pattern continues.

Have A Great Trading Day!

Dan Flynn

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