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We kick off the day with CB Leading Index MoM at 9:00 A.M., Export Inspections at 10:00 A.M., and 3-Month & 6-Month Bill Auction.

On the Corn Front traders are monitoring rains in Argentina. The concerns also have to do with Ukraine exports and Chinese buying. Will they be more aggressive in the Lunar New Year? The market is coming in soft this morning and demand fears are keeping the bulls at bay. Economists are also concerned that China threw out a big surprise acknowledging the country’s population is declining and the actual number is 1.4 billion people. Some economists estimate that China’s population will dwindle from 1 billion by 2050 to 494 million in 2400. The issue is the one-child policy, which ended in 2016, and people dying from COVID-19. This will just add to the volatility in the market at these prices and ahead of the February 8^th Crop Production USDA Supply/Demand and WASDE reports. In the overnight electronic session, the March corn is currently trading at 670 which is 6 ¼ cents lower. The trading range has been 674 ¾ to 669 ¼.

On the Ethanol Front, the Renewable Fuels Association (RFA) reported that higher ethanol blends like E15 and E85 continued to expand in 2021. Thirty-five states and the District of Columbia blasted through the so-called ethanol “blend wall,” according to data from the Energy Information Administration (EIA). Minnesota and Iowa led the way with 12.6% and 11.^% respectively, of statewide gasoline consumption. California, Texas, and 12 other states had an average ethanol blend rate near 10.7%. The national average ethanol blend rate reached 10.32% in 2021 according to the data. The ethanol futures remain at zero Open Interest.

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