We started off the day with MBA Mortgage Applications (11/DEC), and MBA 30-Year Mortgage Rate (11/DEC) at 6:00 A.M., Retail Sales MoM (NOV), Retail Sales Ex Autos MoM (NOV), Retail Sales YoY (NOV) at 7:30 A.M.,Markit Composite PMI Flash (DEC), Markit Manufacturing PMI (DEC), Markit Services PMI Flash (DEC) at 8:45 A.M., Business Inventories MoM (OCT), and NAHB Housing Market Index (DEC) at 9:00 A.M., EIA Energy Stocks at 9:30 A.M., Fed Interest Rate Decision, and FOMC Economic Projections at 1:00 P.M., FOMC Press Conference at 1:30 A.M., and Dairy Product Sales at 2:00 P.M.

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On the Corn front, Mark Weintraub with Successful Farming reported that NOPA Crush showed processors were busier than expected during November, adding to further tighter supplies globally. The strength in Soybeans pulled corn higher after starting the trading day lower for the session. Wheat futures also firmed up after Monday’s selloff, prompting technical buying and bargain-basement speculators back looking to buy value. This just tells me the market and the complex in buying into these markets are not a mirage, but reality in the future. There is movement to purchase grains across the globe. And with the current and global corn reserves the U.S. is “the go-to-guy,” for the moment. We still see the plus side of trade on an even playing field, especially with Mother Nature’s spin on this year’s 2020 season. In the overnight electronic session, the March Corn is currently trading at 425 ¼ which is a ½ of a cent higher. The trading range has been 425 ¾ to 423 ¾.

On the Ethanol front, the industry is wobbling at the knees as it attempts to pick up market share with the many found pluses of ethanol from CO2 and in solid form Dry Ice to move vaccines in the race to halt the coronavirus, while we have a feast or famine picture in the overall energy sector in the global energy picture today. At this point the industry survived with the wherewithal of the many uses ethanol can provide other than blended gasoline in our vehicles. With exports of grain continuing to push the historical highs of November and December the industry is now looking at what if. We need to employ workers and have the perseverance on making CO2 and hand sanitizers and disinfectants as well as blended gasoline. What this industry did make a comeback the country can afford the jobs in this time of swings between doubt and pay-dirt to help jobs in the agriculture and energy industries in the future as well. There were no trades posted in the overnight electronic session. The January ethanol settled at 1.310 and is currently showing 1 bid @ 1.250 and 2 offers @ 1.400 with Open Interest remaining at 32 contracts.

On the Crude Oil front, the API data showed builds of crude oil at +1.973M, Cushing down -0.165M, gasoline stocks up + 0.828Mand distillates up +4.762M.  The current market is trying to digest what is in store in the future after this wild roller-coaster ride and the changes we may see in the agriculture and energy sector with 2020 not in the rear-view mirror just yet. The Catch 22 is the great news about vaccines moving at Warp Speed and the Private Sector working past Mach 1 to make the magic work, other than another government cesspool of government promises and failures. The government’s only answer so far was to shut down business’ and not stop taxing the hurt people and, indeed not send them a deserve needed stimulus check. This morning’s report may change the numbers a little bit, but as we move forward to spring and see daylight at the end of the tunnel, $50 a barrel does not sound so outlandish even with other countries wanting to get back in the game and produce their product. I still see a comeback on the horizon. In the overnight electronic session, the January crude oil is currently trading at 4745 which is 17 points lower. The trading range has been 4766 to 4742.

On the Natural Gas front, the market is trading like the rest of the markets like Cybil, risk on/ risk off even with a big eastern snowstorm brewing which could pose further demand destruction fears with the lockdowns or the reality we need natural gas to boost the grid when Mother Nature gives us the cold or colder times of winter and the hot or hotter times of summer. While investors and traders watching the global prices and chance to export to an advantage that is in the numbers for now to the U.S. producer. And other technical traders will approach slowly or aggressively. In the overnight electronic session, the January natural gas is currently trading at 2.658 which is .024 lower. The trading range has been 2.679 to 2.654.