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Grains had a strong recovery today from the overnight post-election sell-off with big reversals. It will be interesting to see if we can hold this strength tomorrow! The US $ remains sharply higher, however well off session highs.
With a Trump presidency comes a more adversarial administration to climate change spending, and thus, carbon policies instituted by the Biden Administration are on the chopping block. This was considered a major revenue stream for the biofuel industry in the next decade. Conversely, Trump's likely relaxation of CAFE standards could raise ethanol usage. The concern remains that Trump would institute a trade war and China may preemptively reduce soy purchases. China is already on a reduced program with the US. The US Presidential election had the least effect on the wheat markets. Obviously today's movement and the initial viewpoint of the policies that might come into play is just that: initial. It will take time to see how the 47th President really impacts the US Grain Markets.
An export sales report is due out tomorrow morning and is expected to be within the range. Daily export sale announcements were noticeably lacking this morning, contrary to the last several weeks.
The production of ethanol utilized an estimated 109.8 million bushels of corn in the week ending November 1, up from 107.5 million the previous week, and up from 106.3 million bushels in the same week last year. Marketing year to date estimated corn use for ethanol totals 927 million bushels, down 9 million bushels from the previous year's pace, although last year had 2 more days included at this point in the year.
Funds were thought to have been all buyers today.
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