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 Fed Bullard Speech at 7:30 A.M., Fed Barkin Speech & Fed Bostic Speech at 9:50 A.M., Export Inspections 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 the Central US is forecast to be dry the next week or two heading into June, which makes my day. The forecast also is calling for normal to above normal precipitation across the spine of the Central US, including the Southern and Western Plains. The Great Lakes and Eastern Midwest will have a pattern of dryness and above normal warmth extended to June. We could see wheat rationing summer feed consumption as corn prices across the Western Plains were not competitively priced and the feed supply deficit the drought-stricken Plains has not been solved. However, fob corn prices have fallen seeking elevated domestic consumption following the loss of export demand and China cancellations. The May Cattle on Feed report was neutral with no surprises as trade statistics coming right in to trade estimates. However, the report marked the 8th consecutive month that feedlots were below a year ago. In last Friday’s action the corn market could not hold on to early gains with sharply lower wheat prices, shrinking soybeans, and eventually the corn succumbed to the pressure while offering tough resistance before following suit. The break was another engineered and orchestrated crisis by the current administration to have too many irons in the fire so the American people will not follow. This debt-ceiling should have been a done deal weeks ago and this tax &spend administration knows that! We won’t expect too much breaking news on Export Inspections but the Crop Progress will have our attention as we monitor new dryness in certain area’s and much needed rains in other regions such as North Dakota, South Dakota, and Minnesota planting percentages rise. In the overnight electronic session the July corn is currently trading at 558 ¾ which is 4 ¼ cents higher. The trading range has been 562 ½ to 553 ¼.
On the Ethanol Front Gary Gastelu with Fox News reports, Electricity or Ethanol: What really powers the world’s quickest car? Rimac Nevera and Dodge Demon 170 both claim the record. The Rimac Nevera took all the marbles this week. The $2.2 million Croation electric “hypercar,” laid claim to an astounding 23 production car performance records that it set in one day. But at least one of them are up for debate. The 1,914 horsepower Nevera accelerated from 0 to 60 mph in 1.74 seconds, which beat the previous mark of 1.79 seconds set by the Pinninfarina Battista last year. It’s not that much of a surprise, since the Battista uses the same chassis and powertrain as the nevera but is designed to be more luxurious. However, something else happened in between those to events. This March, Dodge unveiled the Challenger SRT Demon 170, which will be the last V8-powered muscle car it ever builds before launching an all-electric model next year. The $100,361 coupe’s supercharged engine is rated at 900 horsepower when running on gasoline, but filling the tank with E85 boosts that to 1,025 horsepower, thanks to higher octane of the ethanol blend. Using the good stuff, Dodge said the Demon 170 was able to sprint to 60mph in 1.66 seconds, a figure certified by the NHRA. So, that’s the record, right? Well…. Dodge set its mark on a drag strip that had traction compound at the starting line to help with acceleration, while the German test track used by Nevera was bare asphalt. Rimac also engaged with services of two companies to record the car’s performance , neither of which was the NHRA. Ultimately, there is no single automobile recordkeeping authority, which makes this a bit of a gray area. Even the Guinness World Records doesn’t currently have one listed for 0 to 60 mph, according to a spokesperson, so we went straight to the horses’ mouths to find out what they had to say about this horsepower race. There is more to read about technology vs. technology and finding fair value price to purchase will hang over consumers heads. Electric car makers are pushing no AM< radio in their vehicles, I assure you that will not happen for several reasons. There are to many political forum’s on AM radio that politicians will love free advertising. Putting the cart before the horse is not business savvy just like the administration not getting the debt ceiling limit in order. There were no trades or open interest in ethanol futures.
Have A Great Trading day!
Dan FlynnQuestions? Ask Dan Flynn today at 312-264-4374