Stimulus Or No Stimulus. The Corn & Ethanol Report

We started off the day with U.S. Current Account (Q3) at 7:30 A.M., CB Leading Index at 9:00 A.M., Fed Evans Speech at 10:00 A.M., Fed Brainard Speech at 10:10 A.M., Baker Hughes Oil & Total Rig Count at 12:00 P.M., Fed Bank Stress Test Results 2nd Round at 3:30 P.M.

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On the Corn front, many traders are still talking about strong U.S. domestic corn demand and strong CIF basis, good weekly corn sales, and talk of South American crops which have been the guiding light in this late in the year rise in prices that have lacked real harvest pressure usually seen in this quarter seasons usual cycle, and the rise in U.S. export demands as traders have hoped for. Funds remain heavily long and will need additional headlines to trade even higher to trade even higher while commercials are remaining on the short signs of trade. Talk on the street is that added U.S. exports and lower U.S. carryout have many are betting that lower carryout could push March corn to the 450-460 price levels with big resistance at 450. So, the market is digesting several factors with South American weather, acreage guesses and actual realized exports. Traders still believe China will import 20-22 mmt corn versus the USDA target of 16.5 mmt. Informa estimate U.S. corn acreage to be at 91.1.vs. 91.3 last year. With funds and commercials battling out the price range forecasts, “Let the games begin!” In the overnight electronic session, the March corn is currently trading at 434 ¼ which is 1 ¾ of a cent higher. The trading range has been 434 ½ to 432.

On the Ethanol front, the industry needs Federal relief. What is holding up the stimulus….? These are the Americans all over that earned their right to the package that need the help because they truly had skin in the game and are either furloughed, unemployed and you have not given needed relief for months, to feed their families with little to zero and negative income. We want these people to have a green light to what they earned and deserve not people on the border that did not play any part in getting us through this crisis and thanks for your so-called generosity in this vote harvest time. The Ethanol industry rolled with the changes during this pandemic and zeroed in on pluses that ethanol can be used for other than ethanol for gasoline use that makes the U.S. a great country and adjusted to the tough times and using the private sector to achieve and produce the most favorable outcome with no help from the government and not be smothered with Big Government agendas. There were no trades posted in the overnight electronic session. The January ethanol settled at 1.320 and is currently showing 1 bid @ 1.250 and 2 offers @ 1.400 with Open Interest at 32 contracts.

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