We kicked off the day with Challenger Job Cuts (Jan) at 6:30 A.M., Export Sales, Unit Labour Costs QoQ Prel Q4, Nonfarm Productivity QoQ Prel Q4, Factory Orders, Initial Jobless Claims (29/Jan), Jobless Claims 4-Week Average (19/Jan) and Continuing Jobless Claims (22/Jan) at 7:30 A.M., Markit Composite PMI Final and Markit Services PMI Final at 8:45 A.M., ISM Non-Manufacturing PMI (Jan), Factory Orders MoM (Dec), Factory Orders ex Transportation (Dec), ISM Non-Manufacturing Business Activity (Jan), ISM Non-Manufacturing Employment (Jan), ISM Non-Manufacturing New Orders (Jan) and ISM Non-Manufacturing Prices (Jan) at 9:00 A.M., EIA Natural Gas Storage at 9:30 A.M., NY Fed Treasury Purchases 10 to 22.5 yrs. at 10:20 A.M., $-Week & 8-Week Bill Auction at 10:30 A.M.

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On the Corn front, the market is trying to read all of the tea leaves but the negative news is in headline after headline which is causing overload and a tilt to the machine. I knew a good cattle trader that was quoted, ”Bull markets need to be continuously fed,” and this market must trade higher with all of the cost from energy to fertilizer skyrocketing. We still see tight supplies in Brazil. Weather is playing a factor with transportation issues whether it be by land or sea. This is most definitely a slowing economy. Next Wednesday we have the USDA WASDE reports. In the overnight electronic session the March corn is currently trading at 615 ¼ which is 7 ¼ cents lower. The trading range has been 624 ¼ to 614 ½.

On the Ethanol front, Iowa, gas stations would be required to upgrade their infrastructure to sell ethanol products under a bill passed by the Iowa House on a bipartisan basis yesterday. The measure passed 82-10 which would require gas stations to have the ability to sell ethanol blends of gasoline by 2026. Both parties said that this was the way to back Iowa farmers and the state as a whole. A large sum of corn grown in the state is used for ethanol production. There were no trades or open interest in ethanol futures.

On the Crude Oil front, we are seeing wild ranges play out and the market is limping in on this Thursday. The damage has been done with higher prices and we can expect further hardships before we navigate out of this mess. In the overnight electronic session the March crude oil is currently trading at 8769 which is 57 points lower. The trading range has been 8814 to 8675.

On the Natural Gas front, we are giving yesterday's gains back and then some. For the moment the market is looking at demand destruction with power lines down across the areas that felt the brunt of the winter storm. The Thomson Reuters poll with 16 analysts participating estimate withdrawals ranging from 297 bcf to 232 bcf with the median withdrawal of 277 bcf. This compares to the one-year withdrawal of 174 bcf and the five-year average