7/2/20 7:45am
The grains were persistent overnight, flipping early losses into small gains this morning although amid slower volume; the trade looks
willing to head into the long holiday weekend maintaining a bullish tone, post -USDA acreage, and forecasts into mid-July make that fairly easy to stomach.
DOE total fuel ethanol production rose for the ninth straight week this week, to an even 900,000 barrels per day, up from 893k bpd last week and the 537k bpd late-April bottom, though still well below 1.081 mln bpd on the comparable week last season. Cumulative output since September 1 fell slightly again this week but is stabilizing in the 930k bpd area, down around 100k from last year’s pace and final figures, indicating a 525-550 mln bu YoY corn use for ethanol decline—a bit wider than the current USDA estimate.
Scattered rains again fell from north to south across the corn belt, though confined central with the east and west dry over the past 24 hours; precip is scattered this morning and will remain so up through the holiday weekend, with amounts light for most, heaviest far north and far south. Extended maps leave above-normal precip in the far north as well, drier central/south, and still hot.
Funds estimated buying 30K corn yesterday for a three-day total of 85K contracts. Still short 223K contracts. With no markets tomorrow we wait until Monday to see updated CFTC data.
Markets close at noon today in observance of the 4th.
Only once in the last five years has corn price not rolled over by the end of next week. This year?
