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Corn And Ethanol: Change In The Weather

Published 10/01/2020, 10:55 AM
Updated 07/09/2023, 06:31 AM
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On the hurricane front, we have two disturbances in one located over the west-central Caribbean Sea moving towards Belize, the Yucatan Peninsula and western Cuba that has a 30% chance to become an cyclone and disturbance two with another tropical wave located a couple a couple hundred miles east of the Lesser Antilles moving westward.
 

On the corn front the USDA Acreage & Stocks Report showed bullish on grain stocks which soared prices on the grain complex. We should see China get back in moving in the cash market even with the Chinese Golden Week holiday. Brazil has already sold their stockpiles and the U.S. seems to be the only U.S. is the only one that can come into play. 

The Canadian jet stream, with cold weather and rain, and the possible disruptions with cargoes in the Gulf Region, should impact premium in prices in the grain markets.

In the overnight electronic session, the December corn is currently trading at 382¼ which is 3¼. The trading range has been 383 to 378.

On the ethanol front John Perkins with Brownfield AG News For America reports showed ethanol supply is a near four-year low. The EIA showed production averaged at 881,000 barrels a day, down 25,000 on the week, 77,000 barrels on the tear with blending demand and the uncertainty with COVID-19.

The Renewable Fuels Association said volume of gasoline supplied the market and the ethanol blender inputs were both fractionally from the previous week but still below last year’s levels from last year. There were no trades posted in the overnight electronic session. The November ethanol settled at 1.313 and is currently showing 1 bid at 1.210 and 2 offers at 1.410 with Open Interest at 72 contracts. 

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