We kicked off the day with MBA Mortgage Refinance Index, MBA Purchase Index, and MBA Mortgage Applications at 6:00 A.M., EIA Energy Stocks at 9:30 A.M., 2-Year FRN Auction and 17-Week Bill Auction at 10:30 A.M., 5-Year Note Auction at 12:00 P.M., Dairy Products Sales and Milk Production at 2:00 P.M.

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On the Corn Front prices moved forward with no new fundamental news to drive it. There were no significant weather changes in South America. The USDA announced the sale of 130 tons (5 million bushels) of corn to unknown destinations. The U.S. market could be ripe for exports to pick up as Brazil has exported old crop and corn crop #1 and will have to hold exports until crop #2, this should trigger more exports in the coming months. In the overnight electronic session the March corn is currently trading at 678 ½ which is 1 ½ of a cent lower. The trading range has been 681 to 676 ½.

On the Ethanol Front biofuels in Australia remained low in 2022. Despite new fuel standards last January, the ethanol blend rate did not increase according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network. Biodiesel consumption is also very low. According to the report, Australia currently has only three ethanol plants, a number that is at least a decade old.

Capacity use was at 38.9% last year, flat 2020 and 2021. There were no trades or open interest in ethanol futures.

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