Argentina faces $1.85 billion in extra freight costs to export corn and soybeans on the corn front. Canada’s decline of nearly 37% week-on-week to 387,200 mt and lack of rain or excess precipitation in Canada’s crop-producing provinces Alberta, Saskatchewan, and Manitoba. Managed money cuts net-long corn to a 31-week low. With the Ukraine and Black Sea exports in doubt, I just see a huge void that needs to be filled, and the US is just starting an active hurricane season in the Atlantic. We also have other Acts of God with La Nina forecasts. In the overnight electronic session, the July corn is currently trading at 735 ¾, which is 8 ¾ cents higher. The trading range has been 741 to 731 ½.
The corn lobby wins big on the Ethanol Front as the EPA finalizes record ethanol blending requirements. Joe Kakesh, general counsel for renewable fuels industry group Growth Energy, welcomed the final 2022 requirements and put it in the context of greenhouse gas emissions and record fuel prices. Kakesh told the Washington Examiner that:
“biofuels continue to play a critical role in mitigating climate change and, most importantly, today in lowering prices at the pump for drivers across America.”
There was zero activity in the ethanol futures, with the July contract settlement price at 2.160.
On the Crude oil front, this market is chugging along like a yo-yo already with 280 point range with products lower. In the overnight electronic session, the July crude oil is currently trading at 11903, which is 16 points higher. The trading range has been from 12099 to 11819.
On the natural gas front, Germany is planning to wean itself off Russian gas. Forecast for heat and stumbling production has lifted natural gas futures early. Also, the tropical storm is out in the Atlantic with no current threat to the US shoreline. In the overnight electronic session, the July natural gas is currently trading at 9.141, which is 0.618 higher. The trading range has been 9.184 to 9.155