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 week with Chicago Fed National Activity Index, and Dallas Fed Manufacturing Index at 7:30 A.M., Export Intentions at 10:00 A.M., 3-Month & 6-Month Bill Auction at 10:30 A.M., and Crop Progress at 3:00 P.M.
On the Corn Front farmers tightening upon old crop in lieu with cheaper corn prices. In Friday’s action May corn settled ¼ of a cent lower while deferred months settled anywhere from 10 to 11 ½ cents lower. Colder than normal temperatures are expected to hang around with rain and frost damage in some northern tier states in the corn belt. CBOT stays in a struggle of tightening US cash corn supplies with First Notice Day on Friday. Central Illinois cash corn bid is $.65 over on basis in the hunt for supply by end users. Traders are expecting a bottom early this week as the CBOT shifts its focus back to US cash supplies and the premium structure of cash bids. Russia is pessimistic on extending the Black Sea Corridor Initiative ahead of the UN last-ditch meeting this week to see if the corridor can be salvaged. Pessimism over the corridor will start to be closed later this week. Ukraine corn would be the impacted grain nearby. In the overnight electronic session the July corn is currently trading at 609 ¼ which is 6 cents lower. The trading range has been 618 to 608 ¼.
On the Ethanol Front the Minnesota Bio-Fuels Association reported on Friday, transitioning to E15 from E10 in Minnesota would contribute $1.06 billion to Minnesota’s gross domestic product (GDP), according to a new study by ABF Economics. The study said statewide use of E15 in Minnesota will increase ethanol demand, benefit consumers and the state economy and significantly reduces greenhouse emissions. According to ABF Economics, transitioning to E15 on a statewide basis would: Save customers $84 million based on the average price discount between E15 and E10 in 2022. Also provide $809 million in household income and support 20,000 jobs. While reducing 1.02 metric tons of greenhouse gas emissions per year. And expand ethanol demand by 298 million gallons per year. There were no trades or open interest in ethanol futures.
Have An Excellent Trading Day!
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