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TUESDAY EDITION June 6th, 2023 |
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The Corn & Ethanol ReportDaniel Flynnhttp://www.pricegroup.com/ dflynn@pricegroup.com Parabolic Grains Drought Talk vs. Recession Talk. Corn & Ethanol Report 06/06/2023 Tuesday June 6th 1944 79 years ago we were Blessed with The Greatest Generation D-Day Invasion at Normandy. If they weren’t successful there would have been no tomorrow God Bless Men & Woman Veterans! We kickoff the day with Redbook YoY at 7:55 A.M., IBD/TIPP Economic Optimism at 9:00 A.M., API Energy Stocks and LMI Logistic Managers Index at 3:30 P.M. On the Corn Front the market was PLAYING PING PONG OR JUST ACTING LIKE A YO-YO TRADING DROUGHT AND RECESSION FEARS. The Crop Progress showed corn good-to-excellent rating fell 5% to 64%, the corn crop average is 74%. There are debates about how low the yields will be, but we are too early in the growing season to have any firm convictions on yield loss. This weeks dryness should lead to another decline in ratings next week. Other bullish news was the Ukraine dam breach that caused damage to numerous villages and crops. Grains rose last night on the rapid escalation of the war and impact on grain production and trade. Also, the EU will also allow Poland, Bulgaria, Romania, Hungary, and Slovakia to ban domestic sales of Ukraine wheat, corn, rapeseed, and sunflower seed until September 15th with a phase out to follow. This will restrict Ukraine grain exports and caused storage difficulties for Ukraine farmers. Ukraine President Zelenskiy protested and called for an immediate removal of all export EU export restrictions. Stay Tuned! In the overnight electronic session the July corn is currently trading at 603 ½ which is 6 cents higher. The trading range has been 609 ½ to 599 ¾. On the Ethanol Front UNICA, the Brazilian sugarcane industry association, has released data showing that sugarcane processing and ethanol production were up during the first half a May. Ethanol sales were also up during the two-week period. According to UNICA, mills in the south-central region of Brazil processed 43.98 million metric tons of sugarcane during the first half of May, up 28.25% compared to last year. Total sugarcane processing since the beginning of the current harvest season, which began April 1st, reached 78.97 million metric tons, up 24.18% from last year. Keep in mind the Brazilian Foreign Trade Chamber (Camex) reinstated an import tariff on American ethanol to Brazil. The new tariff rate on ethanol is 16% this year and 18% in 2024. There were no trades or open interest in ethanol futures. Have A Great Trading Day! A Subsidiary of Price Holdings, Inc. - an Employee Owned Diversified Financial Services Firm. Orders must be entered via direct verbal communication with a representative of our firm. We cannot be held responsible for orders left in any other manner. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. Investing in futures can involve substantial risk & is not for everyone. Trading foreign exchange also involves a high degree of risk. The leverage created by trading data-on margin can work against you as well as for you, and losses can exceed your entire investment. Before opening an account and trading, you should seek advice from your advisors as appropriate to ensure that you understand the risks and can withstand the losses. Member NIBA, NFA. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or futures. The PRICE Futures Group, its officers, directors, employees, and brokers may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction. Reproduction and/or distribution of any portion of this report are strictly prohibited without the written permission of the author. Contact Dan at (888) 264-5665 or dflynn@pricegroup.com. |
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Robert J. Moriarty