Futures activity

  • Positioning ahead of tomorrow’s WASDE report led to volatility in the corn market last week. Dec-21 futures settled at $5.53 per bushel last week, down $0.26 per bushel from Monday. Dec-22 futures closed at $5.405 per bushel.

S&D and fundamental factors

  • Ahead of the November WASDE report, expectations lean towards slightly higher 2021/22 global corn ending stocks. In the domestic market, a reduction to corn export demand (Chinese buying has been notably absent) may be offset by higher consumption in the ethanol category.
  • Brazil’s corn crop planting pace reached 72 percent, much improved over last year. Weather has been beneficial thus far, with adequate rains to get the crop off to a good start.

Weather, macro indicators, and news

  • The Biden Administration’s Build Back Better plan includes a substantial package for the domestic biofuels industry. The ethanol industry would benefit from expansions to biofuel pump infrastructure and increased blend rates.

IQ subscribers, log in to read more.

Source: 123rf.com
Posted by: Information Services
Our Information Services team assists our clients with understanding commodity and ingredient market dynamics. Using our extensive database of intelligence, we also produce regular commodity and commercial market publications covering supply and demand fundamentals, news alerts on events that shape the markets, and resource guides to give you a complete picture of the industries we monitor.