Bank Bailouts Interest Rate Hikes & Tax Hikes. The Corn & Ethanol Report 03/13/2023

We kickoff the week with Consumer Inflation Expectations at 9:00 A.M., Closed Door FED Emergency Meeting and 4-Week & *-Week Bill Auction at 9:30 A.M., and Export Inspections at 10:00 A.M.

On the Corn Front a lot of if’s have been put into the market.  We gained some ground in Friday’s session after making new lows in the weeks selloff. Uncertainty also remains whether the Black Sea Grain Initiative will be extended as the UN and Russia officials meet this week in Geneva. The FED has an emergency meeting and we expect more answers on The Silicon Valley Bank and how many other bank failures that the US taxpayer is allegedly off the hook. There were rumors on Friday that Chinese interest in US corn helped the rally.  And traders eyes are on the March 31^st  Prospective Plantings. After reaction to the USDA crop production report, along with concerning signs from the Fed about rate hikes, but now with the Silicon Valley Bank problem it may keep the Fed’s hands tied. After closing 7 cents higher on Friday the May corn is currently trading at 601 ½ which is 5 cents lower. The trading range has been 609 to 601 ½.

On the Ethanol Front the US Grains Council (USGC) 20^th International Marketing Conference and 63^rd Annual Membership Meeting in Savannah, Ga, the Council’s Advisory Team (A-Team) solidified key priorities for 2023. US ethanol exports for marketing year (MY) 2021/2022 total 1.45 billion gallons (Bgal), the third largest market year on record, worth $4 billion. As the 2022/23 MY takes off, the council continues to work worldwide to promote US ethanol’s quality, reliability and value worldwide, with a renewed focus on Canada, Japan, The European Union and United Kingdom, India and the Southeast Asia (SEA) region. 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