USDA will issue its monthly S&D Friday at 10 AM Mountain Time. It will be a non-event for US numbers. No production changes on US crops until May and domestic demand changes will most likely be unchanged as USDA historically waits until April to make demand changes after seeing the March Quarterly Inventory Report, which is released on the last business day of March.
World production is what to watch on Friday. With the USDA predicting more corn and beans from South America than everyone else, it is unlikely USDA will increase the South American production.
Highlights
After stating that last Friday would be the day the Biden Administration would announce the formula for ethanol to qualify for SAF tax credit, the announcement was delayed for several weeks. This is a hot political issue as well as very valuable with $1.25 per gallon tax credit that will literally make or break ethanol as a feedstock for SAF. It looks like corn producers will need to document their carbon footprint for corn production to gain the tax credit for the ethanol producers. Ethanol plants will likely pay different prices for corn based on its carbon footprint.
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