Crude Oil Prices Hold $50 A Barrel And Flirting With $51 A Barrel: The Corn & Ethanol Report


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We start off the day with Non-Farm Payrolls (DEC), Unemployment Rate (DEC), Non-Farm Payrolls Private (DEC), Average Hourly Earnings YoY & MoM (DEC), Average Weekly Hours (DEC), Government Payrolls (DEC), Participation Rate (DEC), Manufacturing Payrolls (DEC), and Wholesale Trade at 7:30 A.M., Wholesale Inventories MoM at 9:00 A.M., Fed Clarida Speech at 10:00 A.M., Baker Hughes Oil and Total Rig Count at 12:00 P.M. and Consumer Credit Change (NOV) at 2:00 P.M.

On the Corn front, the market rebounded from early lows that saw some profit taking and the futures ended up to a fraction lower when all was said and done, while global food prices climb with dairy products and vegetable oils leading the charge. Funds remain long while the USDA announcement of 102.6 mt of corn was purchased to destinations unknown ahead of the Export Sales number did not result in any real new buying to reach the next plateau. With the new administration talking about agriculture carbons and South American weather news, which is all on traders’ radar, they were not backing off but kept their buyer hands in their pockets. In the overnight electronic session, the March corn is currently trading at 497 which is 3 cents higher. The trading range has been 499 ½ to 492 ½.

On the Ethanol front, the USDA is reopening the Higher Blends Infrastructure and Incentive Program (HBIIP) that has money left over to match fuel marketers who want to add higher blends of ethanol and distributors who want to put biodiesel distribution ethanol. The deadline was mid-August of last year to apply. However, the USDA has $22 million left to spend that was awarded in which applicants decided not to accept for one reason or another. As a result, the USDA will reopen a 2nd chance 30-day application window that ends January 19th. There were no trades posted in the overnight electronic session. The April contract settled at 1.566 and is currently showing 1 bid @ 1.310 and 0 offers posted with Open Interest at 45 contracts.

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