China Sneezes And The free World Catches A Cold. The Corn & Ethanol Report 05/17/2023

We kickoff the day with MBA 30-Year Mortgage Rate, MBA Mortgage Market Index, MBA Mortgage Refinance Index, MBA Purchase Index, and MBA Mortgage Applications at 6:00 A.M., Building Permits Prel, Building Permits MoM Prel, Housing Starts, and Housing Starts MoM at 7:30 A.M., EIA Energy Stocks at 9:30 A.M.,17-Week Bill Auction at 10:30 A.M., 20-Year Bond Auction at 12:00 P.M., and Dairy Products Sales at 2:00 P.M.

On the Corn Front were getting passed talks of plantings and guesstimate of yields and a slow export market. All of the headlines are out to shock, rattle & roll the markets with the global economy is key as like plantings and yields. Exports are slow while many ingredients the market, which has told us, distribution, domestic supply to name a couple. Throw in the Black Sea corridor agreement is unreachable at this time. Russia will continue to play hardball but Mother Nature is proving that they cannot forecast the weather, so sports fans we are in a globally weather market with global economics and getting product to end-users is essential. We expect the US export market to pick up but the kink in the wheel are economics and Mother Nature. In the overnight electronic session the July corn is currently trading at 566 ¼ which is 15 cents lower. The trading range has been 582 ¾ to 564 ¾.

Do I dare say, “we are close to a bottom?”

On the Ethanol Front todays EIA Energy data will report on fuel ethanol stocks and production. This is increasingly a large market as countries try and trap all carbon emissions. The US is and could be a larger export vehicle to this market. The countries that talk and flex their muscles must participate as well. Or is this just another loophole for the politicians. 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