Corn continues to grind lower while soybeans and wheat have stabilized. Corn is down 7 while soybeans and wheat are both up 4 to start the day.
Selloffs in commodities due to both the coronavirus pandemic and an ongoing trade war between Russia and Saudi Arabia is putting a squeeze on US ethanol producers; with gasoline futures now down to their lowest levels since they began being trading in 2005, ethanol producer margins are deeply in the red; much of this negativity is being driven by the crude oil price war between Saudi Arabia and Russia and that battle does not appear to be ending any time soon. Plants across the country are slowing down or shutting down and most are drastically widening basis levels due to the current margin levels.
There is talk that China may be looking for US soybeans, US fob soybean prices are now competitive vs Brazil. Soymeal could be supported by continued confusion over Argentina export situation. This week private estimates of Brazil and Argentina soybean crop were lowered due to dry weather.
Producers with old crop corn should be making sales and locking in current basis levels as this will continue to get worse with ethanol demand dropping sharply with severe restrictions on travel.
Have a Safe Day!