Monday Market Briefing - 28th June 2021

Markets were static for most of last week as another USDA report looms, this one should confirm an increase in US corn acres from the March estimate as actual plantings become clear.

We dipped below our recent support levels Thursday/Friday when the US Supreme Court ruled in favour of petro-chemical Companies seeking exemptions from the bio-ethanol mandate in cases of economic hardship. The Supreme Court these days is heavily Republican, a Trump legacy, but the ruling will now be applied/interpreted by the Biden Administration so in all likelihood the net effect will be small on the ethanol industry this year. Nevertheless it’s hardly bullish and gave sufficient encouragement for the markets to continue recent downside momentum.

We expect further jitters going into the report this week, after which attention turns more directly to the actual condition of the crop. Early reports from the European harvest are still good but ongoing weather delays are becoming a problem with another unsettled week ahead for much of Europe including ourselves this week.

Have a good week and stay safe.