In the overnight session July corn was off 7 cents, December
corn was down 1, KC wheat was unchanged, MPLS wheat was up a penny, CBOT wheat
was down 2, July soybeans were unchanged, and November soybeans were unchanged. At 8:30 outside markets have the DOW about
unchanged, crude about unchanged, the US dollar unchanged, and gold up 4 bucks.
The main headline I am seeing this a.m. is favorable
weather. Yesterday there was talk of a
heat dome and that helped spike corn up a little as did some unwinding of
spreads; but more look as heat as needed for the crops. As long as it isn’t a super long hot and dry
period warm weather will help development for the most part.
We will have ethanol numbers out later this a.m.; most are
looking for similar numbers to last week.
A little talk of ethanol imports is out there; something that we will
need to watch. But here again will
imports really be bullish or bearish? If
we can’t produce enough ethanol our self is having to import it bullish or
bearish? Depends on the view I guess.
Overall my view on ethanol remains very bullish; I think the
margins are very strong and the tight stock situation with the margins and lack
of coverage is just a huge explosive situation.
Fireworks; not all good fireworks but huge volatility in the days to
come. Ethanol plants and other end users
not having coverage for July/August is simply scary; but so is the inverse to
new crop. In the end someone will
probably get paid very well; but the next few guys to sell might end up with
new crop values.
INFORMA will be releasing acre updates later today around
10:30 central time.
Wheat prices are back down near the levels that China bought
the last couple of days; some are wondering if they will be in again?
Watch for more harvest updates; of which I haven’t seen
many.
Please give us a call if there is anything we can do for
you.
No comments:
Post a Comment