Dan Flynn is the writer of The Corn & Ethanol Report, a daily market letter covering grains, energies, and various global issues that are the driving force and backbone of the commodity markets. Contact Mr. Flynn at (312) 264-4374
We Kickoff the day with Redbook YoY at 7:55 A.M., JOLT’s Job Openings IBD/TIPP Economic Optimism, Factory Orders MoM, Factory Orders ex Transportation, and JOLT’s Job Quits at 9:00 A.M., Fed Cook Speech at 12:30 P.M., API Energy Stocks at 3:30 P.M., Fed Mester Speech and LMI Logistics Managers Index Current at 5:45 P.M.
On the Corn Front the USDA’s Crop Progress said five states have started planting corn. Farmers in Kansas, Kentucky, North Carolina, Tennessee, and Texas have started planting the 2023 crop. Kansas corn is 1% planted, on pace with the five-year average and 1% behind last year’s 2%pace. In Kentucky, 2% of the corn crop is in the ground, ahead of both the 2022 and the five-year average planting pace. North Carolina farmers are slightly behind last year and the five-year average with 1%of their corn crop, on pace with the five-year average with 1% of the crop planted so far. Tennessee farmers have also planted 1% of their corn crop, on pace with the five-year average and ahead of the 2022 growing season’s pace. Over the past seven days, Texas farmers planted 5% of the state’s corn. Total planted corn acreage stands at 57% in the Lone Star State, says the USDA. That’s 3% ahead of the 54% five-year average Across all 18 of the top corn growing states 2% of the US corn crop is in the ground, says the USDA. John Scheve with Superior Feed reported the USDA Stock confirmed what was expected, there is less corn in storage compared to last year. This should mean limited downside on old crop corn prices an US corn exports will be watched closely over the next three months. Scheve also said reduced corn acres does not necessarily lead to more soybean acres. Yesterday we had flash sales of 130,000 MT corn to Mexico and 2600 MT of Bean Oil sold to unknown destinations. Brazil’s soybean exports jump as corn shipments slow. We’re starting in the red this morning with the May corn currently trading at 650 ½ which is 7 ¼ cents higher. The trading range has been 657 ½ to 650.
On the Ethanol Front corn for ethanol use fell in February. The USDA says 399.844 million bushels of corn were used in fuel alcohol production, a decrease of 9% from January and 2% from February 2022. Those declines can be tied to uncertainties about ethanol consumption because of relatively high gasoline prices and poor producer margins. Production of distillers dried grains with soluble was reported at 1,560,717 tons, down 9% on the month and 8% on the year. The next corn for ethanol use will be the big grain report day April 11th. Bullish news is Jim Wiesemeyer with AGWEB reports Japan on Friday announced a new biofuels policy. It could allow the US to capture 100% of Japan’s on-road ethanol market, US Trade Representative (USTR) Katherine Tai said Friday. “The new biofuels policy Japan announced is the result of the close collaboration between our two countries and it will allow US producers to meet Japan’s demand for more diverse energy sources,” Tai said in a news release. There were no trades or open interest in ethanol futures.
Overbought & Profit Taking Early In The Grain Session. The Corn & Ethanol Report 04/04/2023
We Kickoff the day with Redbook YoY at 7:55 A.M., JOLT’s Job Openings IBD/TIPP Economic Optimism, Factory Orders MoM, Factory Orders ex Transportation, and JOLT’s Job Quits at 9:00 A.M., Fed Cook Speech at 12:30 P.M., API Energy Stocks at 3:30 P.M., Fed Mester Speech and LMI Logistics Managers Index Current at 5:45 P.M.
On the Corn Front the USDA’s Crop Progress said five states have started planting corn. Farmers in Kansas, Kentucky, North Carolina, Tennessee, and Texas have started planting the 2023 crop. Kansas corn is 1% planted, on pace with the five-year average and 1% behind last year’s 2%pace. In Kentucky, 2% of the corn crop is in the ground, ahead of both the 2022 and the five-year average planting pace. North Carolina farmers are slightly behind last year and the five-year average with 1%of their corn crop, on pace with the five-year average with 1% of the crop planted so far. Tennessee farmers have also planted 1% of their corn crop, on pace with the five-year average and ahead of the 2022 growing season’s pace. Over the past seven days, Texas farmers planted 5% of the state’s corn. Total planted corn acreage stands at 57% in the Lone Star State, says the USDA. That’s 3% ahead of the 54% five-year average Across all 18 of the top corn growing states 2% of the US corn crop is in the ground, says the USDA. John Scheve with Superior Feed reported the USDA Stock confirmed what was expected, there is less corn in storage compared to last year. This should mean limited downside on old crop corn prices an US corn exports will be watched closely over the next three months. Scheve also said reduced corn acres does not necessarily lead to more soybean acres. Yesterday we had flash sales of 130,000 MT corn to Mexico and 2600 MT of Bean Oil sold to unknown destinations. Brazil’s soybean exports jump as corn shipments slow. We’re starting in the red this morning with the May corn currently trading at 650 ½ which is 7 ¼ cents higher. The trading range has been 657 ½ to 650.
On the Ethanol Front corn for ethanol use fell in February. The USDA says 399.844 million bushels of corn were used in fuel alcohol production, a decrease of 9% from January and 2% from February 2022. Those declines can be tied to uncertainties about ethanol consumption because of relatively high gasoline prices and poor producer margins. Production of distillers dried grains with soluble was reported at 1,560,717 tons, down 9% on the month and 8% on the year. The next corn for ethanol use will be the big grain report day April 11th. Bullish news is Jim Wiesemeyer with AGWEB reports Japan on Friday announced a new biofuels policy. It could allow the US to capture 100% of Japan’s on-road ethanol market, US Trade Representative (USTR) Katherine Tai said Friday. “The new biofuels policy Japan announced is the result of the close collaboration between our two countries and it will allow US producers to meet Japan’s demand for more diverse energy sources,” Tai said in a news release. There were no trades or open interest in ethanol futures.
Have An Excellent Trading Day!
Dan Flynn
Questions? Ask Dan Flynn today at 312-264-4374