Unemployment Number will Weigh On Market. The Corn & Ethanol Report 04/03/2020

We kickoff the day with the Unemployment number which is already taking a toll on the Stock market early. And I look away 5 minutes we are in the green. This is going to be a volatile day so let’s look at number at 7:30 A.M. and see what the market did or did not price in. At 9:00 A.M. we have the ISM Non-Manufacturing Index, followed by Baker Hughes Rig Count at 12:00 P.M. and Total Vehicle Sales at 5:00 P.M.

On the Corn front we had several wrinkles in the market where it tested contract lows, bounced and gathered a little steam so the funds pounced and the market had a weak close of 333 ½ which was 1 ¼ of a cent lower. The contract low of 332 held however as the market could not punch through 333. Export Sales were not outstanding but two of South Korea’s feed makers privately bought 200 mt of Corn and those feed makers were Korean Feed Association (KFA) and Major Feed mill Group (MFG). Also South Korea’s Corn processing association Kocopia look to but 60k mt of non-GMO Corn locked in at $209.65. In the overnight electronic session the May Corn is currently trading at 337 which is 3 ½ cents higher. The trading range has been 338 ½ to 334.

On the Ethanol front the April contract expires today. In February exports reached 194.16 million gallons with Brazil being the top importer with 56.1 million gallons, followed by India with 47.6 million gallons and Canada with 29.44 million gallons. Now data shows Ethanol production crashes to a 6 ½ year low. The EIA said production has fallen by 16.4% or 165k barrels a day to a total of 840k. There were no trades posted in the overnight electronic session. The May contract settled at 0.865. The market is currently showing 1 bid @ 0.880 and 1 offer @ 0.890 with Open Interest at 308 contracts.

On the Crude Oil front we are still riding the wave as Saudi Arabia said it is willing to consider a massive cut in production as long as other nations join the effort. Oil price resounded and shot out of the cannon up 25% in one day which was a record and now in the overnight action we are seeing more follow through. The May Crude Oil is currently trading at 2744 which is 212 points higher. The trading range has been 2856 to 2352.

On the Natural Gas front the market is in side-ways trade after the huge sell off. In the overnight electronic session the May Natural Gas is currently trading at 1.547 which is a ½  of a cent lower. The trading range has been 1.582 to 1.530.

Have a Great Trading Day!
Dan Flynn