$8 corn cash deals are starting to surface

Spot corn prices in some areas are affected by ongoing rail logistics issues and high transportation costs. Normally, spot prices, mostly base, would be lower if transportation costs increased, but given the high demand and end-user needs, this is currently not the case.

In the April 8 USDA report, the USDA estimated U.S. ending stocks for 2021-22 at 1.44 billion bushels. While this report was bearish for corn, the market continued to rally as uncertainty remains over whether and how much corn will be planted in Ukraine as the war rages on.

Spring planting in the northern plains of the United States and the upper Midwest has stalled as more than 10 inches of snow – and in some places more than 2 feet – has fallen this week there. High winds and low temperatures also challenge the northern Corn Belt today.

Tuesday’s announcement by President Joe Biden that sales of E15 will be allowed to continue this summer has boosted spot prices for corn and ethanol. DTN Senior Analyst Todd Hultman said, “Wednesday’s Energy Information Administration report of Department of Energy inventory declines also suggested improving ethanol demand, a slight surprise. bullish at a time when fuel prices, in general, are high.”

Hultman added: “Even before this week’s announcement that E15 sales would be allowed through the summer, ethanol margins were already profitable for plants, reflecting the need for more ethanol to help stretch tight fuel supplies U.S. 2021-22 ethanol production is 10 DTN’s National Corn Index closed at $7.62 late Wednesday, the highest national average since 2012.

“Furthermore, end users have likely become more concerned about securing supplies, anticipating a lack of exports from Ukraine in 2022 and anticipating the possibility of a planting estimate of 89.5 million acres by l USDA lowest in five years Corn bids are especially high in the Southwest Plains where drought is widespread and hay supplies are scarce On top of all that, Brazil’s second corn crop just getting started, and it’s unclear if central Brazil will receive adequate moisture in the coming weeks,” Hultman said.

Mary Kennedy can be reached at [email protected]

Follow her on Twitter @MaryCKenn

About Marco C. Nichols

Check Also

A local resident shares his story about rare diseases | News, Sports, Jobs

Wayne Eppehimer is pictured with a bag of Signature Caramel Popcorn made …