We kicked off the day with Core Inflation Rate MoM & YoY, Inflation Rate MoM & YoY, CPI, Continuing Jobless Claims and Jobless Claims 4-Week Average at 7:30 A.M., EIA Natural Gas Storage at 9:30 A.M., 4-Weel & 8-Week Bill Auction at 10:30 A.M., Crop Production USDA Supply/Demand, Quarterly Grain Stocks, WASDE and Winter Wheat Seedings at 11:00 A.M., 30-Year Bond Auction at 12:00 P.M., and Monthly Budget Statement at 1:00 P.M.

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On the Corn Front the March corn went off at 656 which was 1 cent higher in yesterday’s action. It has been a bearish market but the higher close has mainly to do with traders short covering as they do not want to be heavily short going into today’s grain reports. So the market showed traders squaring up on short positions. In the overnight electronic session the March corn is currently trading at 659 ¾ which is 3 ¾ cents higher. The trading range has been 660 ¼ to 654 ¾.

On the Ethanol Front production increased mbd up from 844 last week. Production was still below the pace that the USDA corn for ethanol usage. Inventories slipped back for the 2^nd week in a row to 23.8 mb which was below expectations. Demand was at 7.56 mbd which was down 4.4% from a year ago. Traders are expecting today’s WASDE report to show a drop in corn use foe ethanol to drop anywhere from 25-50 million bushels. There were no trades in ethanol futures.

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