On the corn front, we had a Turnaround Tuesday. Differences in weather forecasts were enough to change the market’s fortunes. We are in the pollination stage, and if the heat remains, it will likely affect yields. This comes at a time when Brazil and Ukraine will not be able to export corn, which leaves little margin for error in the weak US corn crop.
We have a global food shortage, just go to your local grocery store and try to find essential products and you will understand this is only the tip of the iceberg. In the overnight electronic session, the September corn is currently trading at 597, which is a ¼ of a cent higher. The trading range has been 600 ½ to 590 ½.
On the ethanol front, the market is expected to grow to account for 9.3% of India’s gasoline supply in 2022, up 15% compared to 2021, according to the USDA Foreign Agricultural Information Network. According to the report, India is expected to have 252 ethanol refineries this year, up from 231 in 2021 and 220 in 2020. The country still has its sights on a goal to move to the E20 blend by 2025. There were no trades or open interest in ethanol futures.
On the Crude oil front today, the August contract expires. Last night’s API showed builds in crude +1,860M and builds in gasoline of +1.290M, distillates showed draws of -2.153M, and Cushing showed builds of 0.523M.
The trainwreck of a US energy policy has the market in a volatile bounce. In the overnight electronic session, the September crude oil is currently trading at 9862, which is 212 points lower. The trading range has been 10055 to 9851.
On the natural gas front, weather and Russia’s cork of the EU’s energy with scaling back on the Nord Stream Pipeline keep threatening prices. Acts of God we cannot blame, but again the US energy policy made this crisis happen. In the overnight electronic session, the August natural gas is currently trading at 7.427, which is 0.163 higher. The trading range has been 7.475 to 7.174.