Super Bowl Monday. The Corn & Ethanol Report

We started off the day with Consumer Inflation Expectations (JAN) and Export Inspections at 10:00 A.M., 3-Month and 6-Month Bill Auction at 10:30 A.M., I hope your team one last night and if not, there are no other Monday morning reports.

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On the Corn front, we ended up a penny lower in Friday’s action. Funds remain heavily long, and the question is whether they may lighten up today and/or tomorrow's 11:00 A.M. USDA data. The market failed to attract new buyers last week as it was still digesting the huge sales posted from the week before. Nonetheless, the market remains fundamentally bullish with crop news from South America with lower yields with estimates continuing to spiral lower after every new survey and report, and re-plantings that are feeling the rainy side of La Nina are triggering a void in any recovery of the crop. Traders do anticipate China to step back into the arena with more purchases and unless there is a surprise pre-report purchase, expectations of a bullish report may force their hand. And we are starting to see the annual tug and pull of U.S. corn and soybean acreage. In the overnight electronic session, the March corn is currently trading at 550 which is 1 ½ of a cent higher. The trading range has been 551 ¾ to 548 ¾.

On the Ethanol front, John Perkins with Brownfield Ag News of America reported Friday that ethanol exports for 2020 were down 9%. Canada was the biggest buyer, and their sales were down 1.5% with Brazil coming in as the second-biggest buyer with their sales down a whopping 40% with uncertainty of import and export tariffs established by both Brazil and the U.S. The Renewable Fuels Association (RFA) said imports were higher year to year (YoY)for India, E.U., Mexico, and Nigeria. Producers and traders are watching for China to step into this market and asking at what commitment and volumes they seek. Traders will also be looking at tomorrow's USDA report with corn for ethanol use. There were no trades posted in the overnight electronic session. The April ethanol settled at 1.749 and is currently showing 1 bid @ 1.551 and 2 offers @ 1.749 with Open Interest at 41 contracts.

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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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