On the corn front, the futures ended up higher supported by the inflationary signal the Consumer Price Index showed us. Add in weather conditions in the U.S., and plantings could slump as the ground may be too cold for plantings. Throw in weaker than normal South American exports with the war in the Ukraine, and that will put in a crunch of higher prices before inflation. The numbers are telling me we are headed down the wrong path at every turn. In the overnight electronic session the May corn is currently trading at 772 ¼, which is 4 cents lower. The trading range has been 775 ¼ to 769 ½.
On the ethanol front, production is expected to be unchanged, with stocks showing a slight draw. EPA could add 25 million to 45 million bushels to the old crop grind for ethanol. There were no trades or open interest in ethanol futures.
On the crude oil front, the API data showed builds in crude oil of 7.757M, of which more than half of the build was contributed of the release of SPR’s. Again, the plan did not work as we have been saying all along. Cushing showed builds of +0.375M, gasoline had draws of -5.053M and distillates -4.961M. These numbers did little to shock the war demand and exclusion of Russia from the world community. In the overnight electronic session, May crude oil is currently trading at 10214 which is 154 points higher. The trading range has been10289 to 9987.
On the natural gas front, the market is supported with the winter storms in the plains and Midwest. No doubt the war premium is part of it. In the overnight electronic session, the May natural gas is currently trading at 6.779, which is 0.099 higher. The trading range has been 6.920 to 6.652.