AM Comments 4/8/15
Wednesday, April 8, 2015, 8:04 AM
Submitted by: Eric Kist
The overnight markets were mixed, and both corn and beans are slightly higher as we head into this morning’s session. Volume has been almost non-existent on the front end of this week, as the number of contracts changing hands the past couple days was reportedly the lowest of the calendar year thus far. Trade-worthy news has been hard to come by since the March 31 Stocks & Acres reports, and the corn and bean markets have moved mostly sideways as a result.
The weekly Energy Stocks report will be released today by the Energy Information Agency (EIA), which will show us the latest ethanol production and storage numbers. Ethanol margins are slowly creeping back higher, and last week’s EIA report showed a decrease in stocks from the previous week. It is expected that ethanol plants will maintain positive margins through the summer driving season, as fuel consumption is expected to rise.
Tomorrow the USDA will release its monthly Supply/Demand report for April, but it is expected to be fairly uneventful. The market is expecting a mild reduction in soybean stocks of 10-15 million bushels, and corn is expected to show a 50-100 million bushel increase. Assuming market estimates are in line, the market will likely shrug off this report in quick fashion, and will move on to trading early-season weather patterns.
Corn – 1-2 cents higher
Beans – 1-2 cents lower
Have a good day!