We start off the day with Export Sales, GDP (Q4 ’20)and Jobless Claims at 7:30 A.M., New Home Sales MoM (DEC), New Home Sales (DEC) and CB Leading Index MoM (DEC) at 9:00 A.M., EIA Gas Storage at 9:30 A.M., Kansas Fed Manufacturing Index(JAN) at 10:00 A.M., 4-Week & 8-Week Bill Auction at 10:30 A.M. and 7-Year Note Auction at 12:00 P.M.
On the Corn front, the market continued to roll coming out of the blocks with news China had purchased more corn and record gallons of ethanol. The market ended up struggling to settle higher on the day and the March and May contracts did so barely with back months lower. Analysts differ on the selloff, with some claiming that the gas and oil had nothing to do with it. I tend to beg to differ as farmers want to hear what their cost average with all the energy they need and try to cut costs in their cost of doing business. The market is making new highs as I write with traders expecting a sweet export sales number. In the overnight electronic session the March corn is currently trading at 539 ½ which is 5 ½ cents higher. The trading range has been 539 ¾ to 529.
On the Ethanol front, prices climb as China commits to the biggest ethanol purchase ever, with more purchases to come. Historically, China has been a major purchaser of U.S. ethanol since 2013. This could be a shot in the arm to get idle ethanol plants moving in 2021, provided China follows through on those purchases. Another tidbit with the gas & oil news, all energy industries will be proceeding with caution. There were no trades posted in the overnight electronic session. The April contract settled at 1.658 and is currently showing a tighter spread in the market with 5 bids @ 1.650 and 1 offer @ 1.699 with Open Interest at 44 contracts.
On the Crude Oil front, the market is moving slow after yesterday’s news on drilling and leases that trashed the Stock market and had a change in the direction of the U.S. dollar. The industry will be waiting on more news and headlines in the coming days and weeks. In the overnight electronic session the March crude oil is currently trading at 5267 which is 18 points lower. The trading range has been 5286 to 5222.
On the Natural Gas front, the market is easing off on the news that major oil companies are confronted with and future to the industry with fracking, leasing, profits and future employment. We will have winter weather in the lower 48 in the next 6-10 days and the weekly EIA Gas Storage this morning. The Thomson Reuters poll with 18 analyst participating estimate withdrawals ranging from 145-bcf to 127-bcf with the median 138-bcf and actual 136-bcf. This compares to the one-year withdrawal of 155-bcf and the five-year average of 146-bcf. In the overnight electronic session the March natural gas is currently trading at 2.656 which is .046 lower. The trading range has been 2.701 to 2.625.
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