Weaker trade overnight with possible profit-taking

Overnight- Corn, soybeans and wheat futures are trading weaker with some profit-taking after a strong weak of trading in the soy complex.

The Biden Administration’s EPA released its goals for EV production for the future with big upticks starting with 2027 model years with a goal of over 67% of vehicles produced being EVs by 2032.

This will weigh on the ethanol industry going forward without being able to move ethanol to the SAF market.

Part of this will depend on the tweaks to the GREET model that should be released in the coming weeks.

Moisture across the Northern Plains and the northern part of the Cornbelt came in the form of snow overnight and is very welcome but one event will not cure the drought conditions in many areas.

Flash sale of corn to Mexico of 263K tons.

Mexico is already at a record setting pace for corn imports from the US and continues to buy. They are an incredible trading partner and with our proximity to them it will be hard for them to ever walk away from doing business with the US.

Bottomline

The precipitation event across the Midwest and Nothern Plains has many turning bearish short term but no one was caught by surprise. This event has been well publicized for a week. The market cares more about next week’s acres report and Brazil’s longer term forecast.

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