Shake & Bake. The Corn & Ethanol Report 11/15/2023

We kickoff the day with MBA 30-Year Mortgage Rate, MBA Mortgage Applications, MBA Mortgage Market Index,  MBA Mortgage Refinance Index, and MBA Purchase Index at 6:00 A.M., PPI MoM & YoY, Retail Dales MoM & YoY, Core PPI MoM & YoY, NY Empire State Manufacturing Index, Retail Sales Ex Autos MoM, PPI Ex Food, Energy, and Trade MoM & YoY, and Retail Sales Ex Gas/Autos MoM at 7:30 A.M., Fed Barr Speech at 8:30 A.M., Business Inventories and Retail inventories Ex Autos MoM at 9:00 A.M., EIA Energy Stocks at 9:30 A.M., 17-Week Bill Auction at 10:30 A.M., NOPA Crush at 11:00 A.M., Dairy Products Sales at 2:00 P.M., and Fed Barkin Speech at 2:30 P.M.

AgResources reports soybean producers sell 20% of tour 2023 soybean crop at $14.19 basis March to push sales to 60%. The monthly Consumer Price Report showed a slightly lower-than expected October inflation rate of 3.2%. This was down 3.7% in September and just below the average trade estimate of 3.3%. It was also the lowest monthly inflation tally since June and the first month-over-month decline since last January. Nevertheless, the price index in October set a record high after increasing 7.&% in 2022 and 6.2% in 2021. Stocks and commodities rallied following the report release, and the US dollar collapsed, all in hope that US interest rate hikes have ended. With continuing changing political and weather cycles, traders will eye this crop with demand in a weak global economy. These issues are not making the market see a euphoria rally but the plenty of hurdles ahead of us and wondering what is next. The focus will be basic supply and demand, production in energy and food as we move into 2024. With ongoing stress on Brazilian crops and the ability of the US House to pass a Continuing Resolution (CR) to keep the US government operating into early 2024. In the overnight electronic session the December corn is currently trading at 475 ¾ which is 2 ½ cents lower. The trading range has been 480 ½ to 475 1/4.

On the Ethanol Front Adkins Energy reports that the farming economy is revving up ethanol-fueled engines. Adkins Energy located in Lena, Illinois, has plant producers explaining how a grain of corn is fueling the US economy, with carbon capturing creating a new revenue source. Jason Townsend, Assistant general Manager for Adkins Energy, said, “We take the corn from local farmers, we end up processing it, we grind it, we cook it, we ferment it and produce ethanol, d.d.g. wet cake, and biodiesel from that.” Townsend has been working in the ethanol industry for more than two decades. He explained how to go from corn kernels to the gas you’re getting at the pump. We also have many other uses than fuel that is right in front of us and ingenuity. Brittany Hardaway reports and you can find the story in Ethanol Producer news and other outlets. There were no trades or open interest in ethanol futures.