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The Corn & Ethanol Report: Volatility YO-YO Continues

Published 07/19/2022, 11:15 AM
Updated 07/09/2023, 06:31 AM
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US corn conditions are holding steady. 37% of the crop is silking, which is behind the five-year average of 48%. The crop conditions include, 3% very poor, 8% poor, 25% fair, 51% good and 13% excellent. A lot of corn is undergoing pollination across the Midwest this week and next.

Also, the corn crop is shorter than normal. Some say three weeks of dry weather occurred early in the season are making corn plants to “roll up” during the rapid growth period. In the overnight electronic session, the September corn is currently trading at 598 ¼, which is 14 cents lower. The trading range has been 611 to 593 ¼.

On the ethanol front, Red Trail Energy LLC, located in Richardton, North Dakota, begins carbon capture and storage.

Gerald Bachmeier, CEO of Red Trail Energy, said:

“After six years of research, development, and investment Red Trail Energy is celebrating this historic moment in North Dakota and the United States history, becoming the first facility permitted under state primacy to capture and store CO2. Our success establishes a trail for other industries in the state to follow.”

Ethanol futures remain in the doldrums with no activity.

On the crude oil front, tomorrow, the August contract expires. Russia’s crude deliveries to China and India have plunged 30% from their wartime peak as concerns Asia can’t fully absorb Moscow’s shrinking oil market. The US market slumped in listless summer trading. In the overnight electronic session, the September crude oil is currently trading at 9752, which is 190 points lower. The trading range has been 10024 to 9676.

Natural gas is starting the day lower as well. Russia’s Gazprom (MCX:GAZP) declares a force majeure on some European gas buyers. This is a signal it intends to keep supplies capped, reinforcing Russia’s grip on the region's energy. This is forcing emergency gas rationing for EU countries under the crisis plan. In the overnight electronic session, the August natural gas is currently trading at 7.213, which is 0.266 lower. The trading range has been 7.544 to 7.109.

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