On the corn front, the Midwest weather forecast hit the market but not as hard as recession fears that had a swath of commodities in the red along with the stock market. The market seems to be treading water after yesterday’s onslaught.
Most of Western Europe and the Black Sea remain dry. Ukraine reported exporting 1 mmt of corn in June. CBOT corn is now well below pre-Ukraine war levels, despite the potential loss of 25 mmt of Ukraine supplies to the market. Lack of new demand for US exports and feelings the US 2022 corn crop will be enough to satisfy demand limits on new buying. Machines are selling weakness and prompted funds to liquidate on the lows. Dalian corn was lower, and the corn crop rating good to excellent dropped to 65% vs. last week’s 67. In the overnight electronic session, the September corn is currently trading at 597 ¼, which is 5 cents higher. The trading range has been 598 ½ to 585 ¾.
On the ethanol front, the July contract expires today. Michigan Senate on June 30th voted 24-14 in favor of legislation that aims to create a tax credit for retailers that chose to sell higher ethanol blends such as E15 and E85. The bill was sent to the Michigan House of Representatives. This is just another sign of the push for biofuels such as ethanol which is moving at a rapid pace while the ethanol futures remain in drydock.