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Spring Forward: Less Demand Focus

On Tuesday March 31, the corn market gave us an April 1st reaction treat to the USDA's +100 million bushel (above expectation) stock figure. The USDA corn stocks report came in at 7.7 billion bushels of corn inventory, and the market finished the day down 18 cents in the nearby futures. The real eye catcher for ethanol plant procurement is that there is 4.4 billion bushels of corn on farm (up 13%). It seems like the type of number that should make a grain buyer complacent about his job. However, note on the same day, the U.S. Weather Service issued its drought outlook. Free storage on the horizon ?

In the USDA's Planting Intention Report, there was a shift from corn to soybeans and sorghum, but not as great as expected.

The CFO Systems Corn Crush

The CFO Systems Corn Crush is now $0.62/gallon of ethanol on April 3, 2015.

*Using nearby CBOT corn futures, CBOT ethanol futures, USDA corn oil prices and ethanol industry conversion standards.

We believe positions are unique to each person's risk bearing ability, marketing strategy and crop conditions, therefore we give no blanket recommendations. The risk of loss in trading commodities can be substantial, therefore carefully consider whether such trading is suitable for you in light of your financial condition.