Joshua Van Ryswyk

On the Grains Grain prices are mostly firmer in overnight trade. There is little to chew on from the fundamental side until traders see tomorrow's April WASDE update and the extent and direction of changes in ending stocks forecasts. Until then we're seeing more and more commentary confirming Ag traders taking note from outside markets like gold and the likelihood Consumer Price Index (CPI) numbers due later today will show prices increased by 3.4% in March, up from 3.2% in February. The Producer Price Index (PPI) will be out tomorrow and that's expected to show an annualized increase of 2.2% for March, up from 1.6% in February. Further re-stoking inflation worries, the Energy Information Administration (EIA) just raised its average price estimate for Brent crude this year to $89 a barrel from $87 previously. Reasons? "Expectation of strong global oil inventory draws and ongoing geopolitical risks." EIA specifically cites Middle East tensions and attacks on shipping in the Red Sea in combination with OPEC+ extending output cuts into the seasonal increase in demand for summer driving. Speaking of gasoline demand, all is not well on that front long-term. NCGA is sounding the alarm on the impact EPA's new tailpipe emissions…

On the Grains Grains are soft in overnight trade thus far with no signs of any issues in yesterday's weekly planting progress update. Weekly export inspections were actually pretty good yesterday. Corn loadings came in above the high end of expectations, wheat loadings right at the high end and soybean loadings midway in the range. Between stronger than expected jobs growth data and Fed remarks about toning down expectations for rate cuts by year end to two instead of three. These factors have some pessimistic pundit's even suggesting there is potential for further hikes if the decline for inflation rates should end and start creeping up instead and that's rattling the stock markets. The weekend news about SAF qualifications for corn are not being released until mid-May was actually a bit better than expected for some in one sense. They note that originally, it was feared to meet specs to qualify for use in SAF production, farmers would have to comply with all three requirements of "efficient" tillage, "efficient" fertilization practices as well as employing cover crops. Now it appears any one of those practices may be acceptable and if so, the requirements may be less onerous than feared when…

On the Grains Grains were steady to mixed in overnight trade. We'll get weekly export inspections at 10am but the weekly Crop Progress Report showing the pace of planting and trend in wheat crop ratings won't be out until after markets close. Friday's Commitments of Traders report showed that through last Tuesday Funds were only increasing their net short positions in corn, soybeans, SBM and spring wheat while finally beginning to lighten up on net shorts in Chicago and KC wheat and adding sharply to a new net long position in soybean oil. We also learned over the weekend that the long-awaited subsidy model for Sustainable Aviation Fuel (SAF) probably won't come until mid-May. It's expected to require that corn used for SAF be grown using one of three "sustainable" methods including efficient tilling, cover crops or efficient fertilizer application. Key to how restrictive that will be depends on how they define "efficient" tilling or fertilizer application. Today's focus will largely be on the range of trade estimates for the April WASDE due on Thursday. As for U.S. ending stocks, the trade is looking for corn to decline 70 million bu. from March on average, but once again ranging widely…