Energy And Grains Rock’n The Holiday Market. The Corn & Ethanol Report

We started off the day with MBA Mortgage Applications (25/DEC) and MBA 30-Year Mortgage Rate (25/DEC) at 6:00 A.M., Goods Trade Balance Adv (NOV)< Wholesale Inventories MoM Adv (NOV) at 7:30 A.M., Chicago PMI (DEC) at 7:45 A.M., Pending Home Sales MoM & YoY(NOV) at 9:00 A.M., EIA Energy Stocks at 9:30 A.M., 105-Day & 154-Day Bill Auction at 10:30 A.M., Baker Hughes Oil & Total Rig Count at 12:00 P.M., and Dairy product Sales at 2:00 P.M.

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On the Corn front, what can you not say? Lower U.S. dollar and exports continuing to rise, and the carryover continues to diminish forcing and hoping for a good growing season. And the weather in Argentina and Brazil has raised eyebrows not to mention U.S. exports not seen in some time. The March corn punched through 460 and Steve Freed, V.P. ADMIS Grain Research points out the next major resistance is 519, which is close to the 2014 highs. This market seems poised for another good run in 2021, even with surrounding questions with the trade deal with China and other countries. As Vince Lombardi wrote, Winning is a habit, but unfortunately so is losing. After the soybeans flirted with the teens in yesterday’s trading session the market is giving back roughly a dime in the early overnight session. The market made progress coming back from the lows an attempting to proceed higher at this writing. In the overnight electronic session, the March corn is currently trading at 64 ¼ which is 1 ¾ of a cent lower. The trading range has been 466 to 462.

On the Ethanol front, India has redrafted vehicle rules to achieve higher blending ratios. The changes require manufacturers to determine and visibly display compatibility to E20, E85, and E100 gasoline blends in new vehicles. Surplus in corn and rice in April and September were added to the feedstocks for ethanol blending, in addition to sugarcane-based feedstocks of B heavy molasses, C heavy molasses, and sugarcane juice, as well kept included damaged food grains. Domestic food security concerns will temper volumes of staple foodstuffs used in ethanol production, limiting potential for expanding production beyond sugarcane-producing states. There were no trades posted in the overnight electronic session. The January ethanol settled at 1.420 and is currently showing no bids or offers with Open Interest at 30 contracts. February and March ethanol does not stack up to the interest of the April contract which is very close to the start of the summertime driving season. April settled at 1.510 and is showing 1 bid @ 1.510 and 1 offer @ 1.551 with Open Interest at 42 contracts.

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