Omicron Oh My God. The Corn & Ethanol Report

We started off the day with NY Fed Treasury Purchases TIPS 1 to 7.5 yrs. at 9:30 A.M., Export Inspections at 10:00 A.M., 3-Month and 6-Month Bill Auction at 10:30 A.M.

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On the Corn Front the economic impact of Omicron has been outweighing bullish news. There is talk of large purchases from the Ukraine by China in the hundreds of thousand of tons, which would be a disappointment for U.S. corn exporters. But there is talk China bought some U.S. corn which would be bullish when confirmed. Another factor weighing in on the market is China’s corn output rose 4.6% in 2021. In the overnight electronic session the March corn is currently trading at 580 ¾ which is 3 ½ cents lower. The trading range has been 585 ½ to 579 1/2,.

On the Ethanol Front growth Energy CEO Emily Skor applauded the state of Oregon for finalizing its rule to allow the sales of E15. “Access to higher blends is a win for Oregon drivers and the environment”, Skor was quoted. There remains zero open interest in the ethanol futures.

On the Crude Oil Front the market is recovering from the omicron selloff with demand fears being quelched. OPEC is maneuvering and they want prices to stay high. In the overnight electronic session the January crude oil is currently trading at 6822 which is 192 points higher. The trading range has been 6864 to 6672.

On the Natural Gas Front the market continues its blitz to the downside. Traders believe prices could plunge after a volatile winter. In the overnight electronic session the January natural gas is currently trading at 3.756 which is 0.376 lower. The trading range has been 3.886 to 3.692.

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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