Brazil is expected to harvest 120 million mt of corn on the corn front in 2022/23. While here in the US, we realize there is more corn, fewer soybeans, and winter wheat. Last we seemed like grain traders packed it in early with buyers absent on Thursday and Friday. The USDA Grain Stocks and Acreage report that coincided with the end of the month, end of the quarter, the halfway mark off 2022, and ahead of a major US holiday triggered long liquidation.
The lack of an immediate weather issue in the Corn Belt also lent to bears taking control. Corn planting is now complete with soybeans 2% from completion. US crop conditions last week slipped 3% on corn good to excellent to 67%, which is still above last year. There was no overnight market due to the holiday, and it will reopen at 8:30 A.M.
On the ethanol front, there were no other headlines since Thursday as this market will roll with E15. The cash market is active while the futures stay stuck in limbo.
On the crude oil front, Saudi Arabia, the world’s top exporter, raised August crude oil prices for Asian buyers to near-record levels amid tight supply and robust demand. Meanwhile, Citi warns oil may collapse to $65 by the rear-end of a recession. This is a buzzkill, but once the attack on US energy, we saw things unravel and unfold right before our eyes with no common sense approach to change the administration’s energy policy.
There is one simple way to curb inflation and take a swat at unemployment with a single stroke of the pen. The solution is obvious, get Anwar, Keystone, and Permian Basin rolling again. In the overnight electronic session, the August crude oil is currently trading at 10824, which is 19 points lower. The trading range has been 11145 to 10725.
On the natural gas front, reports that natural gas is having its oil moment as Bloomberg’s Stephen Stapcznski says the hottest commodity in the world is natural gas. The war in Ukraine made tight supplies even tighter,` and who is most dependent on fossil fuel. We are in selloff mode this morning and a sharply higher US dollar. We also had lower temps in the Midwest, which made it nice for the 4th of July weekend with lesser pressure on the power grid. In the overnight electronic session, the August natural gas is currently trading at 5.463, which is 0.267 lower. The trading range has been 5.907 to 5.325.