Image Source: Unsplash

We kicked off the day with NY Empire State Manufacturing Index at 7:30 A.M., Export Inspections and Fed Waller Speech at 10:00 A.m., 3-Month & 6-Month Bill Auction at 10:30 A.M., and NOPS Crush Report at 11:00 A.M.

The USDA unloaded some surprising bearish data as funds heavily sold corn, soybeans, and soybean meal ahead of the negative data Friday, though speculators had been active sellers along with the funds. In the week ended Jan 9, money managers expanded their net short in CBOT corn futures and options to 270,713 contracts, their most bearish corn stance since June 2020. The week’s net selling surpassed 33,000 contracts, the most since any week since October, and new gross shorts were the driver, most-active CBOT corn futures declined 1% in the week ended Jan 9, though futures now stand at 4-Year lows for the date, down 33% from a year ago as global supplies recover. The USDA confirmed the supply expansion on Friday, pegging the US corn yield at an all-time high 177.3 bushels per acre, well above the average trade guess of 174.9. The record US corn crop combined with a big boost in China’s record crop pushed global corn stock estimates to six-year highs. Corn futures tumbled more than 2% on Friday following the report, hitting new contract lows in seven different delivery months. March futures ended at $4.47 per bushel, the moat-active contract’s close since December 2020. Read the full story with Karen Braun with Reuters. As the polar vortex descends on the Corn Belt. XtremeAg.farm, have been pushing through extreme cold to keep their farm operations moving. XtremeAg.farm is a team of the nation’s top producers who have come together to share their experience, expertise, knowledge and other farming practices with other farmers. Visit ExtremeAg.farm for more information. In South America a drier climate is forecasted in both Brazil and Argentina into Jan 24-25, after which eastward movement in the Madden Julian Oscillation promotes the return of rainfall in Mato Grosso, Goias, and Bahia. South American precipitation will be largely confined to RGDS in far southern Brazil as well as fringe producing areas in northeast Argentina.

On the Ethanol Front the market is expected to reach USD 153.5 billion by 2032, at CAGR 5.1%according to DataHorizon Research. Prominence of sustainability an innovation drive the ethanol landscape. As we switch towards alternatives and cheaper energy prices to the consumer. Last night’s Iowa caucus showed where these ag industries stand.

More By This Author:

Funds Continue To Pound Short Grains. The Corn & Ethanol Report
Big Bearish Corn Bet. The Corn & Ethanol Report
Energies & Grains Trading Mirrored. The Corn & Ethanol Report