Corn futures market flexes amid wild planting season

This past Wednesday, the Jul-19 corn futures contract pushed to a three-year high before showing resistance around $4.38. The market rally began on May 13, when futures opened at a 2019 low of $3.35 and have only declined in two trading days since. In [...]

Signs of faltering ethanol demand?

After more than a year of record ethanol output, production may finally be starting to slow. In its December WASDE report, USDA reduced total corn demand for ethanol manufacturing by 50 million bushels to 5.6 billion bushels for 2018/19.  Ethanol margins have been squeezed by low crude oil prices paired with an increase in corn futures prices. Ethanol futures, conversely, reached the lowest [...]

Steep drop in oil influences corn futures

Corn futures are correlated to oil prices, as corn is used to produce ethanol. Oil prices hit an 11-month low due to weak demand and ample supply. WTI Crude Oil settled at $55.69 on Tuesday, its lowest closing price since Nov. 16, 2017. The oil [...]

U.S. & China may resume trade talks, soybeans rally

Soybean futures rallied almost 29 cents on Tuesday on reports that China and the U.S. may resume talks. This occurred just ahead of the end of the comment period on an additional $16 billion in U.S. tariffs on Chinese goods.  U.S. Treasury Secretary Mnuchin [...]

Trade & the wider picture for commodity futures

With trade uncertainties mounting, benchmark grain futures have lost ground this month: August soybeans down nearly 15 percent, September wheat down more than 6 percent, and September corn down just shy of 10 percent. Unsurprisingly, soft commodities overall have trended lower. Crude oil, however, [...]

Corn & soybean stocks higher, new-crop acreage lower than expectations

USDA’s initial plantings forecast puts 2018/19 corn plantings at 88.0 million acres, compared to average trade expectations of 89.5 million acres, and soybean plantings at 89.0 million acres versus 90.9 million widely expected in the market. Corn and soybean futures settled strongly higher as [...]