Powell Show Overshadowed Commodities. The Corn & Ethanol Report 03/08/2023

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., ADP Employment Change at 7:15 A.M., Balance of Trade, Exports and Important 7:30 A.M., Fed Chair Powell Testimony, JOLTS Job Openings and Job Quits at 9:00 A.M., EIA Energy Stocks at 9:30 A.M., 17-Week Bill Auction at 10:30 A.M., Crop Production USDA Supply/Demand and WASDE at 11:00 A.M., 10-Year Note Auction at 12:00 P.m., Beige Book at 1:00 P.M., and Dairy Products Sales at 2:00 P.M.

On the Corn Front we did not hold onto any gains like other commodities markets shocked by Jerome Powell’s Hawkish comments.  Talk of higher interest rates really put some legs in the US dollar and weighed in on commodity valuations.  This was bad news for consumers and traders alike. With Powell Senate Testimony, EIA Energy Stocks and WASDE in that order traders may wait and see if they have any comfort level and keep their hands in their pockets. We will see a different Prospective Plantings number on March 31stIn the overnight electronic session the May corn is currently trading at 634 ½ which is a ¼ of a cent higher. The trading range has been 637 ¼ to 633 ¼.

On the Ethanol Front Michelle Rook with AG WEB reports, Soybean Processing Welcome in Northwestern Corn Belt: Will Support Soybean Prices and Improve Basis. A domestic market for soybean  and soybean oil continues to develop. As more crush plants come online, USDA is forecasting new records. At the AG Outlook Forum, USDA’s NASS projecting soybean crush to top 2.3 billion bushels as Renewable diesel production continues to expand. In North Dakota three plants are planned with a total 138 million of crush capacity. Those include a 42.5-million-bushel plant near Casselton, a 53-million-bushel facility at Spiritwood and a 42-mb plant north of Grand Forks. That will mean a fight for more soybean acres or a shift in the marketplace. There were no trades or open interest in ethanol futures.

 

Have A Great Trading Day!

Dan Flynn

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