Corn is up 1 and soybeans are down 4 to start the morning.
The U.S. Supreme Court on Monday turned away an industry group’s bid to revive a decision made by the Environmental Protection Agency under former President Donald Trump to allow expanded sales of gasoline that has a higher ethanol blend, called E15.
The action by the justices dealt a blow to the ethanol industry, which wants to increase sales and access to E15. Growth Energy, a biofuels industry group that had filed a petition asking the justices to review a lower court’s ruling vacating the Trump administration E15 policy, expressed disappointment in the Supreme Court’s decision.
The forecast for South America looks a little different from yesterday. The biggest change is in the long-term temperature maps. The hot air mass that has been sitting over Southern Brazil and Argentina looks to be backing off. Current temps are in the 100’s where the crop is seeing maximum stress. There was also no rain overnight, which is supposed to happen later this week. Most of the rain that they will see is forecast into Northern Argentina and Eastern Brazil.
This crop report is going to have some wild volatility in it. We have the final corn and bean yield as well as changes in carryout due to exports and use. South American production will be taken down, but probably on a slow step by step basis. The other big one here is the stocks report where we’ve seen all kinds of grain found and lost over the years. This stocks report could be even more unpredictable because of the port closure in New Orleans back in September and October. My recommendation is to remove any risk you have in the market and sit on the sidelines until Thursday or Friday when we will be back to trading weather. Small old and new crop sales are advised ahead of the report to lock in current margins.
Have a Safe Day!