Weekly Ethanol Production Up


Grains are mixed. SX is up 3 cents and near 13.14. SMZ is near 417.8. BOZ is near 54.48. CZ is down 1 cent and near 4.90. WZ is up 1 cent and near 5.81. KWZ is down 3 cents and near 6.67. MWZ is down 1 cent and near 7.32. US Dollar is higher. US stocks are lower. Crude is lower.

Soybean futures are higher. North Brazil forecast is dry for the rest of October. Long range Argentina forecast adds needed rains. There may be continued technical buying in SMZ. SMZ-SMH spread moved up to +9.00. Tightening of soybean spread overnight suggest higher expectation into today’s sales report. Sales are expected near 950-1,625 mt vs 1,056 last week.

Corn futures are slightly lower. Weekly ethanol production was up 3 pct from last week and 2 pct from last year. Stocks are lowest since Dec, 2021. Resistance is still near 5.10-5.20 due to slow demand for US exports. Weekly US corn export sales are est near 500-1,000 mt vs 910 last week. Ukraine seems to be struggling to get exports moving. Increase difficult logistics in Brazil create some short term window of opportunity for improvement in US export demand.

Wheat futures are mixed. There are unconfirmed rumors of China interest in US HRW/HRS wheat combo’s. India domestic wheat prices are near 8 month high. Argentina export forecast is dropping below USDA guess. Feed wheat trading to Asia at $272 against recent corn trades at $252 makes wheat look expensive. Russia continues to offer wheat for export at below $230 without buyers. Still, large global fund short and seasonals do not argue for lower futures prices.

Interested in more futures markets?  Explore our Market Dashboards here.

Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.

ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.                  

A subsidiary of Archer Daniels Midland Company.

© 2021 ADM Investor Services International Limited.

Futures and options trading involve significant risk of loss and may not be suitable for everyone.  Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.  The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM.  The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared.  The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.

Latest News & Market Commentary

Explore the latest edition of The Ghost in the Machine

Explore Now