Moving Closer To 2021- Let’s Hope This Will This Be A Good Thing. The Corn & Ethanol Report

We started off the day with Challenger Job Cuts at 6:00 A.M., Export Sales, Initial Jobless Claims (28/NOV), Jobless Claims 4-Week Average (28/NOV), and Continuing Jobless Claims (21/NOV) at 7:30 A.M. Markit Composite PMI Final (NOV) and Markit Services PI Final (NOV) at 8:45 A.M., ISM Non-Manufacturing Index at 9:00 A.M., EIA Energy Stocks at 9:30 A.M., 4-Week & 8-Week Bill Auction at 10:30 A.M. and Dairy Products at 2:00 P.M.

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On the Corn Front Successful Farming’s Chuck Abbott reports a University of Illinois Economist, Joe Janzen said on Tuesday that China is buying huge amounts of U.S. corn as it rebuilds its hog herd and recovers from their self-inflicted pandemic. Their appetite may not last through 2021 and their imports could weaken by next fall. He went on to say that U.S farmers are expected to harvest their second-largest crop ever. China’s imports of 13 million tons could taper to a still large 10.5 million tons. Janzen also said, “China will import grain when it needs grain and when the market dictates.”I believe we have seen some sort of this posture recently and they still need grain and I expect more buying from China. In the overnight electronic session, the March corn is currently trading at 424 ¼ which is a ½ of a cent lower. The trading range has been 425 ¾ to 422.

On the Ethanol Front we have Last Trading Day on the December contract. Ethanol production dipped last week, continuing to show the impact of COVID-19 on blending demand. The EIA showed production averaged 974,000 barrels per day (bpd), down 16,000 from last week mainly due or at least part to Thanksgiving, and we were 86,000 below a year ago because of demand uncertainties. The Renewable Fuels Association said blender inputs were the lowest since Mid-June and volume of gasoline supplied to the market also declined.Stocks of 21.240 million barrels the largest inventory since Mid-June, up 374,000 barrels from last week and 601,000 barrels on the one year. The RFA says ethanol imports to the West Coast averaged 9,000 barrels per day. The next USDA corn to ethanol use estimate is out next Thursday December 10th. There were no trades posted in the overnight electronic session. The January ethanol settled at 1.340 and is currently showing 3 bids @ 1.289 and 3 offers @ 1.370 with Open Interest at 36 contracts.

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