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Midwest Marketing Solutions

By Brian Hoops - Columnist | Apr 20, 2021

Alista and Pineda fined

The Commodity Futures Trading Commission announced that the U.S. District Court for the Middle District of Florida entered an order granting the CFTC’s motion for entry of default judgment against defendants The Alista Group, LLC of Orlando, Florida and other locations, and Luis M. Pineda Palacios, a/k/a Luis Pineda of Orlando, Florida. The order finds that the defendants failed to answer the CFTC’s complaint which alleged that Alista and Pineda had engaged in precious metals fraud and illegal, off-exchange precious metals sales to retail customers. The order requires Alista to pay $560,540.95 in restitution and a civil monetary penalty of $1,681,622.85. The order also requires Pineda to pay restitution in the amount of $77,500, and a civil monetary penalty of $370,484.

Corn analysis

Corn closed the week $.10 3/4 higher. Last week, private exporters did not announce any export sales.

In the weekly export inspections report; U.S. corn exports, for the week ended 4/08/21, came in at 62.4 mb. Corn inspections need to average 51.7 mb for the remainder of the marketing year to reach the new revised USDA forecast.

The USDA U.S. corn plantings reached 4% complete, up from 2% last week, 3% last year and the average pace of 3%.

In the weekly EIA report; U.S. ethanol production, for the week ended 4/09/21, declined to 941,000 barrels/day from 975,000 bpd and was a massive 65% higher than last year’s same-week production of 570,000 bpd. U.S. ethanol stocks last week ticked down to 862 million gallons (20.518 million barrels) from 867 million gallons (20.642 mil barrels) the week prior, the 7th decline in stocks over the last 8 weeks. Ethanol stocks remain the lowest for mid-April since 2014.

Strategy and outlook

With new highs recorded and the next fundamental news focusing on spring planting, producers should consider accepting profits on long positions and begin to hedge 2021 production and establish a minimum price floor. Look for highs to be made in the spring to summer timeframe.

Soybean analysis

Soybeans closed the week $.30 higher. Last week, private exporters announced sales of 132,000 mts of soybeans to China and 110,000 mts of soybeans to Bangladesh.

In the weekly export inspections report; US soybean inspections came in at 12.1 mb versus 8.2 mb needed to reach the USDA forecast.

The NOPA crush report showed NOPA crush for the month of March came in at 177.984 mb, below estimates of 179.2 mb. This was a sharp increase from last month’s 155.2 mb but is below year ago levels of 181.4 mb. Soybean oil stocks were 1.771 billion pounds, below estimates of 1.822 bp versus 1.757 last month and 1.899 last year.

Strategy and outlook

Producers should maintain their re-ownership positions and look for highs to be made in the spring to summer timeframe. That is when final cash sales should be made and minimum price floors should be locked in for next fall’s harvest.

This material has been prepared by a sales or trading employee or agent of Midwest Market Solutions and is, or is in the nature of, a solicitation. This material is not a research report prepared by Midwest Market Solution’s Research Department. The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Midwest Market Solutions believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such.

Brian Hoops can be reached at (605) 660-1155.

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