The USDA Crop Progress showed that of the US corn crop planted, 95% of the crop has emerged by mid-June. Currently, 71% of the crop has a good- to excellent-rating, which is a drop from 75% last week. However, last year only 59% of the corn crop had this rating. The states in the western Corn Belt showed the largest decline in conditions ratings. Overall, the ratings are still favorable and if we stay above 70% good-to-excellent, the market will continue to look bearish. We may have gotten a nudge higher but this could create additional selling pressure. The funds have been active sellers. July Corn is currently trading at 331 ¾ which is 2 ½ cents higher. The trading range has been 331 ½-333 ¼
In ethanol, top biofuel and farm advocates have called on the Environmental Protection Agency (EPA) to offer answers, as ethanol production declines in a new effort to undermine the Renewable Fuel Standard (RFS). The biofuels industry has been hit hard by the sharp decline in fuel demand as residents are following local, state and federal guidelines in social distancing and minimizing travel. Over 100 biofuel plants have fully idled, or cut production, with ripple effects on agriculture commodity prices. The EIA said almost all finished motor gasoline sold in the US is blended with 10% ethanol (E10), the drop in gasoline demand has driven similar decreases in fuel ethanol demand and fuel ethanol production. There were no trades posted in the overnight electronic session. The July contract settled at 1.160 and is currently showing 1 bid @ 1.135 and 1 offer @ 1.275 with Open Interest at 72 contracts.
On the oil market, it is Turnaround Tuesday, heading into weekly API energy inventory data. We could test the recent highs of $39 and change. The big stepping stone will be $40 a barrel. July crude is currently around $38.31, around $1.19 higher.
Even with hotter weather moving in and hanging around for a spell, it seems nothing is able to stop natural gas from staying in tank-mode. July gas futures are currently trading at 1.607, around 3.7% lower.