Corn traded higher on whispers of U.S. corn bought at export basis. It is believed China is the buyer, but we will be trying to find out if another country was on the dance floor as well. In yesterday's data U.S. Ending Stocks were pegged at 3.323 billions of bushels with estimates expecting 3.36 billion bushels, World Ending Stocks were 3.378 million metric tones vs. estimates at 3.397 (mmt). Corn for ethanol use dropped by 50 million bushels, but is expected to climb with states slowly re-opening and favorable weather to get people stricken with cabin fever out and about. The USDA set the 2020 corn crop at 15.595 million bushels and farmers are expecting a larger number. Weather factors will be critical from here on out. We will also be keeping an eye on fund activity and farmer selling. December corn has another tight inside day trading range so far, currently trading at 343 ¼, which is a ½ of a cent lower. The trading range has been 343 ¾ to 342 ¾.
Ethanol inventories shrank to their lowest yet in 2020, according to the WASDE report. The WASDE maintained its projection for corn use for ethanol in the 2020-21 crop year. While the outlook for in corn use for ethanol was mostly unchanged when compared to the May WASDE, there were fractional increases to estimates for beginning and ending stocks. There were no trades posted in the overnight electronic session. The July contract settled at 1.192 and is currently showing 1 bid @ 1.117 and 1 offer at 1.235 and open interest at 75 contracts.
Crude oil had investors scrambling to liquidate their longs, as fears over a second wave of coronavirus struck. The market is now trading higher, with many investors believing the panic sell was way overdone. July crude is currently trading at $36.69 which is 35 points higher. The trading range has been $34.48 to $36.75.
Natural gas stalled again, even with hot weather in the southeast and a pattern moving north-northeast at the moment. Also, forecasts are calling for a hot and dry July, which should help move some of the surplus in the U.S. and we have to remember we have a global glut currently. That may change, but the producers I am speaking to are not betting the farm on it. Futures are currently trading at $1.797 which is .016 lower. The trading range has been $1.780-1.882.