Tale Of Two Cities. The Corn & Ethanol Report

We started off the tractors today with Export Sales, Initial Jobless Claims (09/JAN), Jobless Claims 4-Week Average (09/JAN), and Continuing Jobless Claims (02/JAN) at 7:30 A.M., EIA Gas Storage at 9:30 A.M., Fed Bostic Speech at 10:00 A.M., 4-Week & 8-Week Bill Auction at 10:30 A.M., Fed Chairman Powell Speech at 11:30 A.M., and Fed Kaplan Speech at 12:00 P.M.

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On the Corn front, we have a little changeup as the “Tale of Two Cities” started getting into the minds of traders. With yesterday starting the thoughts of the possibilities of changing weather forecast that were for the most part pretty bullish for grains globally. Traders also looked at the trade agreements in place, whether they will stay in place as we look at global surpluses at a low, and thoughts of changing the guard will soften the market as we saw spot corn prices trade higher as deferred months traders just kept their hands in their trading pockets for the moment. They will obviously observe the markets follow through as we move closer to plantings. In the overnight electronic session, the March corn is currently trading at 525 ¾ which is 1 ¾ of a cent higher. The trading range has been 527 ¾ to 519.

On the Ethanol front, production increased from last week and stocks increased to the highest levels since early May. We remember those times and where we came back from. Managed funds bought 5,000 more corn which tells me, they have a reason to be buying that aggressively. There were no trades posted in the overnight electronic session. The April contract settled at 1.738 and is currently showing 0 bids posted and 1 offer @ 1.770 with Open Interest at 45 contracts.

On the Crude Oil front, the market is still rising with the stimulus package talks, vaccines, and Saudi Arabia oil production cuts are navigating waters that are tough to sail. If the market continues to brace for shocks that are expected not to happen and most likely did occur. Then the market is getting poised to expect the unexpected in this boom or bust industry. Crude oil really floated after Tuesday’s party which saw a nice rally. Majors like Exxon Mobil showed shares were up 1.113% in pre-market trading, U.K. majors BP and Shell were up 0.93% and 0.47% respectively. In the overnight electronic session, the February crude oil is currently trading at 5302 which is 11 points higher. The trading range has been 5329 to 5250.

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