- 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.