We start off the day with Personal Income MoM (DEC), Personal Spending MoM (DEC), Employment Cost Index QoQ (Q4). PCE Cost Wages QoQ  (Q4), Employment Benefits QoQ (Q4), Core PCE price Index MoM & YoY (DEC) at 7:30 A.M., Chicago PMI at 8:45 A.M., Michigan data(JAN) as follows:  Current Conditions Final, Consumer Expectations Final, Consumer Sentiment Final, and Inflation Expectations at 9;00 A.M. Also, at 9;00 A.m., Pending Home Sales YoY (DEC), Fed Kaplan Speech, Baker Hughes Oil and Total Rig Count at 12:00 P.M., Fed Kaplan Speech at 3:00 P.M., and Fed Daly Speech at 4:25 P.M.

image source

On the Corn front, the USDA suspended the Corona Food Assistance Program to farmers pending new Biden “administration review”. Massive new corn sales in U.S. corn with 1.7 million tons of 2020/21 corn to China with 214,000 to unknown destinations. Export Sales were also better than expected to other countries leaving analysts saying this was the best flash sales report on record ever. Traders are still wondering about the continuation of China demand after these recent sales, while corn and soybean acreage are becoming more of a hot topic. The corn backed off with plenty of strength and new highs in yesterday’s action. In the overnight electronic session, the March corn is currently trading at 543 which is 8 ½ cents higher. The trading range has been 544 to 533 ¼.

On the Ethanol front, oil refiners and ethanol producers are still having problems to align their mutual interest for the future as traders brace if the tug of war between the two will have changes under the new administration’s climate-driven agenda. There were no trades posted in the overnight electronic session. The April contract settled at 1.658 and is currently showing 4 bids @ 1.640 and 2 offers @ 1.749 with Open interest at 44 contracts.

On the Crude Oil front, Libyan Guards protecting oil installations gave the country’s government a new deadline to pay overdue salaries at two of the nation’s main crude-export terminals, maintaining a lingering threat to the country’s shipments. Guards on strike at the largest and third-largest port, Ras Lanuf and Es Sider gave the government 10 days to pay the salaries. The previous deadline was January 24^th. Mansour Latoush, head of the Petroleum Facilities Guard, said operations are going normal since the guards announced the strike with any disruptions weather-related. In the overnight electronic session, the March crude oil is currently trading at 5257 which is 23 points higher. The trading range has been 5264 to 5193.

On the Natural Gas front, the fallout from low natural gas prices and little new drilling has affected Pennsylvania state agencies and local agencies that have come to depend on the shale gas industry for critical funding. The states conservation and environmental protection departments are already warning of significant less revenue from natural gas royalties and drilling permits when Counties, municipalities, State agencies, and Conservation initiatives that split the fees to offset the industry’s demand on the environment, public services, and infrastructure. This could lead to post-election remorse. In the overnight electronic session, the March natural gas is currently trading at 2.670 which is .006 higher. The trading range has been 2.710 to 2.663.