Waiting on the Fed. The Corn & Ethanol Report 03/21/2023

We kickoff the day with Redbook YoY at 7:55 A.M., Existing Home Sales and Existing Home Sales MoM at 9:00 A.M., 52-Week Bill Auction at 10:30 A.M., 20-Year Bond Auction at 12:00 P.M., API Energy Stocks at 3:30 P.M., and Day 1 of the Fed Meeting.

On the Corn Front there was no new export announcement yesterday. Sara Schafer with AGWEB is conducting a poll on cost to raise corn per acre. “Inflation is real,” says Chris Baron, a national financial for AG View Solutions and a Iowa farmer. Based on data his farmer clients in more than 20 states and Canada, the average cost of production for corn is up $120 per acre from last year. The results with 280 responses had 14% saying less than $50 increase, 15% said $51 to $80 increase, 24%^ increased $81 to $120, 19% increased $121 to $150 or more while 17% said their cost of production was lower. The Black Sea Corridor remains open with a 60 day extension, and Export Inspections were at 47 mil. Bu. were on the high end of expectations. In the overnight electronic session the May corn is currently trading at 637 ¼ which is 4 ¼ cents higher. The trading range has been 637 ¾ to 630 ¾.

On the Ethanol Front a Nebraska bill aims to boost availability of E15 by introducing new requirements for fuel retailers and creating a grant program to support necessary upgrades at fuel retail locations. The Bill, titled the Adopt the E15 Access Standard Act or LB 562, was introduced on Jan 17 and addressed during a Feb 7 legislative hearing. Higher ethanol blends are all the rage in corn growing states. 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