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The Corn & Ethanol Report: Trading Drought Fears

Published 06/05/2023, 03:28 PM
Updated 07/09/2023, 06:31 AM
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On the corn front, Friday’s action showed the intensity of fears with the market trading lower in the early going and a turnaround with weather forecasts suggesting minimal moisture for the central and eastern Corn Belt. High temperatures are expected to moderate but moisture is the key issue at the moment. Every farmer and trader will focus on the Drought Monitor in the next couple of weeks unless heavy rains are not expected in this critical time for the crops. In the overnight electronic session, the July corn is trading at 608 which is ¾ of a cent lower. The trading range has been has been 614 to 605 ½.

On the ethanol Front Darin LaHood (R-Il) sent a letter to US Trade Representative Katherine Tai urging her to protect US farmers and biofuel producers and prioritize US ethanol export competitiveness in the Brazilian market by addressing current unfair trade practices. Growth Energy CEO Emily Skor applauded the letter and thanked the bipartisan group of members for calling attention to the current trade imbalance US ethanol producers face in Brazil. There were no trades or open interest in ethanol futures.

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