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 Business Inventories, Retail Sales MoM & YoY, Retail Sales Ex Autos MoM, Import Prices MoM & YoY, Export Prices MoM & YoY, and Retail Sales Ex Gas/Autos MoM at 7:30 A.M., Fed Waller Speech at 7:45 A.M., Industrial Production MoM & YoY, Manufacturing Production MoM & YoY, and Capacity Utilization at *:15 A.M., Michigan Consumer Sentiment Prel, Michigan 5-Year Inflation Expectations Prel, Michigan Consumer Expectations Prel, Michigan Current Conditions Prel, Michigan Inflation Expectations, and Retail Inventories Ex Autos MoM at 9:00 A.M., and Baker Hughes Oil & Total Rig Count at 12;00 P.M.
On the Corn Front just as we had the first taste of summer the temperatures will drop significantly coupled with rains, halting farmers good jump an plantings. After the weekend temperatures are expected and recover and the farmers will hope the soil soaked in the moisture so they can get back on schedule. Again there are fears in the marketplace that we will see shortages worldwide as Argentina and the Black Sea Initiative will not continue, leaving a gaping hole for importers to by product. With weather a flip of the coin and “tar spots” fears importers will wonder what is fair market value. The Rosario Grain Exchange lowered their Argentine production forecast by 3 mmt to 32 mmt. This will likely be offset by weak US exports, but at the end of the day the US and Brazilian markets may be the only game in town.
In the overnight electronic session the May corn is currently trading at 655 which is 2 ¾ cents higher. The trading range has been 656 ¾ to 651.
On the Ethanol Front Sen. Chuck Grassley (R-Iowa) sent a letter to Joe Biden urging him to issue an emergency waiver to allow E15 sales to continue through the summer 2023 driving season. The letter marked the one-year anniversary of Biden’s trip to Menlo, Iowa, where he announced plans for his administration to issue an emergency waiver allowing E15 sales to continue during the 2022 summer driving season. “One year ago on April 12, 2022 you announced the Environmental Protection Agency (EPA) would issue an emergency waiver to follow for the summertime sale of E15,” Grassley wrote. “At the time, Russia had recently begun the unprovoked invasion of Ukraine. The United States joined it’s global partners in denying the Russian Federation its fundamental economic resource, energy, through banning Russian oil imports.” Maybe if the US was still an net exporter of oil this war may never have happened or would be a boon to US oil exports and drive the economy. Just an idea. There were no trades or open interest in ethanol futures.
Have An Excellent Trading Day!
Dan FlynnQuestions? Ask Dan Flynn today at 312-264-4374