Markets are unchanged this morning in all commodities ahead of tomorrow’s WASDE update. Traders are anxious to see what the USDA does with the corn for ethanol demand side of the balance sheet. This will be the first official report that addresses the recent slowdown in ethanol production.
There are rumors circling that the Chinese are inquiring about US corn. The rumors come at the same time as China announced that they will release 500 TMT of soybeans from their state reserve through COFCO. The move is seen as a way to ease the tightness in supplies of beans as additional crush plants come back online.
The White House is developing plans to get the US economy back in action that depend on testing far more Americans for the coronavirus than has been possible to date. The effort would likely begin in smaller cities and towns in states that haven’t yet been heavily hit by the virus. Cities such as New York, Detroit, New Orleans and other places the president has described as “hot spots” would remain shuttered.
The planning is in its early stages. But with encouraging signs that the outbreak has plateaued in New York after an aggressive but economically costly social-distancing campaign, President Donald Trump and his top economic advisers are once again boldly talking about returning Americans to work.
Producers with old crop corn should be getting this crop moved! Elevators and end users across the country are seeing quality issues from producers that are delivering every day. As we have stated all along, this is not a crop you want to store into late summer regardless of how good you think you are doing with maintaining quality. While the basis and cash price may not be what you want, you need to move it while it is still marketable. Demand for old crop corn has dropped dramatically with ethanol plants slowing down or shutting down. I would advise locking in basis contracts to move the grain and plan to price it sometime before the July 4th weekend.
Give us a call to find out what delivery slots we are still buying for before they are filled up.
Have a Safe Day!