SVB Won’t Be Last Bank Failure. The Corn & Ethanol Report 03/14/2023

We kickoff the day with NFIB Business Optimism Index at 5:00 A.M., CPI sa, CPI, Inflation Rate MoM & YoY, and Core Inflation Rate MoM & YoY ay 7:30 A.M. Redbook YoY at 7:55 A.M., API Energy Stocks at 7:30 A.M., Fed Bowman Speech and International Monetary Market (IMM) at 4:20 P.M.

On the Corn Front we have Last trading Day on all March grains. The market is waiting for this morning’s CPI after the Silicon Valley Bank failures.  Where were the regulators?  Regulation failed us again being asleep at the switch with and also having an SVB officers on the regulation committee. The fact was that SVB was Interest Rate sensitive and with all the startups for solar power were feeling the wrath of spending money by the government and the Fed raising rates to combat inflation. Can you see this recipe for disaster? More banks may be in trouble and analysts pointed out Credit Suisse is also Interest Rate sensitive This sounds like 2008 all over again and who is going to pick up the bill? Biden said a fund banks set aside but are there more failures on the way. Getting back to the corn market there are many reasons the market is sluggish with the bank news, state of the economy, and UN negotiations to reopen the Ukraine export corridor, sluggish exports and Brazil harvesting. The Argentine crop is in bad shape and the Ukraine is lacking of herbicides and pesticides for spring sowing. It could be the farmers were right on the money when they predicted months ago that we may see global food shortages. Will we keep our ears out to see if any more of this story develops. In the overnight electronic session the May corn is currently trading at 610 ¾ which is 2 ¾ cents lower. The trading range has been 614 ½ to 610 ¾.

On the Ethanol Front the market analysis is trying to understand the current state and current trends 2023-2028. The latest ethanol market (106 pages) report with Compound Annual Growth Rate (CAGR) of 6.51 % during the forecast period, offers a dashboard overview of specific regional developments, dynamics, industry segmentations, growth factors, and size if the Industry. It also sheds light on the Leading Players analysis – LyondellBasell Industries NV, Cargill Corporation, Mitsubishi Chemical Corporation, Greenfield, Andersons Ethanol Group, and British Petroleum. The global ethanol market size was valued at USD 52824.91 million in 2022 and is expected to expand at a CAGR of 6.51% during the forecast period, reaching USD 77138.17 million by 2028. 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