Common Sense. The Corn & Ethanol Report 03/20/2023

We kickoff Spring with Export Inspections at 10:00 A.M., 3-Month & 6-Month Bill Auction at 10:30 A.M., and Milk Production at 2:00 P.M.

On the Corn Front NBC reports Sonoma County train derailment near the Bay, is telling me again, there is a safe way to move product and the pipelines are the answer. We could move gas, oil and hazardous materials via pipeline avoiding toxic derailments. The second train derailment in less than a week proved this point. The railroads took time of what they were carrying. Thank God the derailment in Arizona was only carrying corn syrup. There is a cheaper and safer way to move commodities and if we put a consertive effort we can achieve safer railroads and safer pipelines. It seems pretty easy to transport grains by rail and use pipelines for combustible hazardous gases through the pipelines. The banking news has the market skittish and we have to go back to basic fundamentals. WITH QUESTIONABLE EXPORTS FROM Argentina and the Ukraine corridor the market is bracing whether or not we should be concerned with a global food shortage crisis. We also have concerns about a new disease that kills corn and is spreading across the Midwest and Great Plains. The disease first appeared in the US in 2015with reports of the tar spot, fungal disease in Indiana and Illinois. The disease is spreading quickly and the fungal disease attacks the leaf tissue in corn and could rapidly deteriorate the plant. According to the Crop Protection Network, it is estimated that it caused farmers to lose $3 billion in the United States from 2018 to 2021 and has the potential to become more destructive in states now seeing cases. As the market continues to trade wondering what is the right side of the market is, we should see some action. However, the banking crisis and this weeks Fed meeting are front row and center. And we can’t forget the March 31^st Grain Stocks and Prospective Plantings. In the overnight electronic session the May corn is currently trading at 630 ¾ which is 3 ½ cents lower. The trading range has been 633 ½ to 625.

On the Ethanol front the Renewable Fuels Association (RFA) helped retailers win $36 million in the latest round of Higher Blends Infrastructure Incentive Program (HBIIP), and once again the RFA helped dozens of retailers apply for, and win, grant awards that will expand the availability of higher ethanol blends like E15 and E85 flex fuel. This will put further attention on corn and the multi-uses it does not only for feed but for human consumption. 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