CBOT Recovers as May corn Reaches Initial 2016 Target of $3.02; Energy Prices Hurt US Ethanol Demand; China Approves 2 MMTs of Corn Import Licenses

Sharp declines are noted in CBOT futures  in the AM with spot corn testing the 2016 low at $3.02 and then bouncing on modest short covering. May soybeans fell just below the $8.10 support from 2019 while wheat has been pulled lower in sympathy. The deflationary feel is another day of declining energy valuations.  However,…

CBOT Corn Sinks to New Lows While Wheat Rallies to New Highs; Crude Oil Futures fall to Historic Lows – Cash Crude as low as $5/barrel

CBOT corn futures are sinking to fresh yearly lows with May futures reaching $3.14 – the lowest spot price since 2016. Yet, spot KC wheat prices have rallied to their highest price since 2019 – and are testing key resistance. The spot Chi wheat/corn spread has pushed out to a $2.38 premium and appears to…

CBOT Grains Bounce on Short Covering and the Hope for Expanding US Gasoline Consumption; Brazil and Argentina Struggle with Covid-19

 Low volume & mixed is the CBOT at midday. The grains are bouncing from Thursday’s selling while soy futures trade either side of unchanged with soymeal back under pressure on sliding livestock feed margins. Livestock feeders – facing large losses – can feed a lower cost protein ration to help offset a modest portion of…

CBOT Mixed at Midday in Uninspiring Volume; GASC Secures French/Russian Wheat/China hinting that it will Soon Restart Corn Reserve Auctions

 Mixed has been the morning as CBOT futures trade either side of unchanged. The wheat market gave up early gains as Egypt secured French and Russian wheat for late May/June shipment, while the soybean market is trying to reach price levels that stimulate Chinese interest for US soybeans. Bull spreading has been noted in corn…

CBOT Tries To Bounce Following Positive NOPA Crush Report; EIA Data Shows 45% of US Ethanol Industry Shuttered; Chi wheat at 50 Day Moving Average!

CBOT ag futures at midday are weaker as US ethanol production declined to a fresh low amid record large stocks while fund sell stops were triggered as Chi July wheat fell below their 50-day moving average at $5.395. A close below the 50 day moving average will spark additional fund selling with seasonal price trends…