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We start of the day with Fed Jefferson Speech at 4:30 A.M., NFIB Business Optimism Index at 5:00 A.M., Core Inflation Rate MoM & YoY, Inflation Rate MoM & YoY, CPI, CPI s.a., at 7:30 A.M., Redbook Y0Y at 7:55 A.M., Fed Barr Speech at 9:00 A.M., Fed Mester Speech at 10:00 A.M., Fed Goolsbee Speech at 11:45 A.M., and API Energy Stocks at 3:30 P.M.

On the Grains front, we had the delay of Commitment of Traders Report which showed a mixed week of positioning in the grain and soybean markets. Funds were net sellers of 24,000 contracts of corn, pressing the net short position to 169,000 contracts. This was the largest net short for early November since 2017 Funds were massive buyers of soybeans, buying more than 45,000 contracts in soybeans and lifting the net long to an 8-week high, in 69,000 contracts, but 33,000 less than last year.  In wheat funds were buyers in Chicago and sellers in KC/Minneapolis. Across all 3 echanges. funds were net buyers of 57,000 contracts to reduce the net short 157,000 contracts. Still, its record-large net short position in wheat in early November. The historic net short positions in corn and wheat are concerning for the bears, especially as Southern Hemisphere crops are forecast to worsen in weeks leading to December. This could get the market moving and the US market will benefits exports and should have a large open interest with speculators. In the overnight electronic session, the December corn is currently trading at 467 which is 1 and a ¼ of a cent lower. The trading range has been 478 ½ to 473.

On the Ethanol front, Reuters reports the US drive to develop sustainable aviation fuel (SAF) using ethanol could be slowed because of growing opposition to proposed pipelines that would curb greenhouse gas emissions from ethanol plants by capturing carbon dioxide and carrying away to other states for storage.  Ethanol industry players say the developments about the future growth for US producers of the biofuel, including POET, Valero (VLO.N) and others have been banking on proposed carbon capture and storage (CCS) pipeline project across the US heartland. These are needed to lower ethanol’s climate impact for fuel to qualify as a feedstock for SAF under the US Inflation Reduction Act (IRA). President Joe Biden’s administration has committed to producing 3 billion gallons of SAF annually by 2030 and 35 billion gallens in 2050. The goal to decarbonize the airline industry while also supporting the ethanol sector and the corn farmers thay supply the corn. There were no trades or open interest in ethanol futures.

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