Markets were stronger overnight but have opened lower this morning. Corn and beans are down 3 and 5 respectively.
Weekly export sales came in at a near record 292 million bushel for corn.
Actual sales lived up the hype with 7,436,500 mt of corn, 643,100 wheat, and 824,000 mt of beans. Sales were good in all commodities, even at these higher prices. You kind of have to wonder where China is going to put all these products and if they will actually take delivery of them.
US Ethanol production for the week ended Jan 29 totaled 936,000 bls per day (up 0.3% vs a week ago, down 13.4% vs a year ago); Stocks were 24.3 mil bls (up 3.0% vs a week ago, up 3.6% vs a year ago); Corn use 94.6 mil bu vs 94.3 mil last week and 94.6 mil needed to meet USDA projections.
US ethanol inventories have returned to highs last seen in the early days of the Covid-19 pandemic, according to data from the EIA. The EIA reports that ethanol inventories rose 714,000 barrels in the past week to 24.32 million barrels — the highest inventories have been since early May. The inventory build-up appears to show the effect of coronavirus on people using their vehicles regularly. Meanwhile, ethanol production only inched up 3,000 barrels daily to 936,000 barrels per day.
Trade in both directions and big swings are to be expected in the current market place headed into spring and early summer. Timing of your sales is going to be the challenge. With prices at record levels for the last several years, producers and commercials have been active sellers. This is filling the pipeline at local end users which is making it difficult for producers to move unsold corn and beans nearby for any cash needs.
Have a Safe Day!