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.
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