Merry Christmas! The Corn & Ethanol Report

We started off the day with 4-Week and 8-Week Bill Auction at 9:00 A.M. and no other data or reports are scheduled for release today.

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On the Corn front, Meghan Grebner with Brownfield Ag News for America, reported the USDA said corn and soybean sales last week were at a marketing-year low. Corn sales dropped 66% from the previous week and 59% on the 4Week averages. While soybeans dropped 62% and 45% on the same averages. China, however, was the largest purchaser. Not a major shock we hit a lull at this time of year with coordinates and logistics trying to get together and ship product in bulk and harness shipping costs. In the overnight electronic session, the March corn is currently trading at 447 ¾ which is a ½ of a cent higher. The trading range has been 448 ½ to 446 ½. Remember corn on the Dalian Exchange in China keeps posting record highs.

On the Ethanol front, production was up 2% for the week ending (16/DEC). Production of fuel ethanol has stabilized since the historic lows in the spring where ethanol production hit a low of 537,000 bpd week ending (24/APR). But began to recover in May and June when travel restrictions were eased. There were no trades posted in the overnight electric session. The January contract settled at 1.325 and is currently showing 1 bid @ 1.16 and 1 offer @1.400 with open interest at 31 contracts.

On the Crude Oil front, a bullish EIA Inventory report and we are off to the races, Russia’s crude oil exports dropped 10% from January to October. Ministers of the OPEC+ pact will be having a monthly meeting to assess the situation on January 4th. Despite renewed fears of coronavirus strain, Russia is still in favor of a production increase of 500,000 bpd in the alliance starting in February. In the overnight electronic session, the February crude oil is currently trading at 4716 which is 16 points lower. The trading range has been 4862 to 4784.

On the Natural Gas front, we dropped in yesterday’s action as weather modules continued to change forecasts, increasing production, cargoes reportedly canceled, and the EIA Gas Storage data. Expectations were for a withdrawal of 159-160bcf but the actual was 152bcf according to EBW Analytics Group, citing DTN weather data, their analysts said the 16–30-day weather outlook, “ suggests enduring warmth out west,” but temperatures in the Lower 48 in line with 30-Year norms. While the first half of that outlook leans warmer than normal, “tropical patterns suggest a moderately colder-than-normal mid-January.” What’s more, “extremely cold”, conditions next month are possible, should the polar vortex splinter and dip into the Lower 48.” In the overnight electronic session, the January natural gas is currently trading at 2.548 which is 6 cents lower. The trading range has been 2.619 to 2.534.

Disclaimer: A Subsidiary of Price Holdings, Inc. – a Diversified Financial Services Firm. Member NIBA, NFA Past results are not necessarily indicative of future results. Investing in ...

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