Unemployment Data. The Corn & Ethanol Report

On the Ethanol front, the second half of November was the most successful weeks for fuel ethanol production since the pandemic hit, but demand was going in the wrong direction and left a large boost in inventory. Also, travel on Thanksgiving week, usually the biggest travel week for the year was lackluster at best. Now this industry, as well as every business hope Trump has another Ace up his sleeve and the vaccines get distributed and work in a timely fashion so we can escape this nightmare. There were no trades posted in the overnight electronic session. The January natural gas settled at 1.320 and the market is currently showing 3 bids @ 1.280 and 2 offers @ 1.370 with Open Interest at 32 contracts.

On the Crude Oil front, the delayed OPEC+ meeting was worth the wait as they met and reached a compromise to increase production to 500,000 barrels per day in January. Starting next month, the OPEC+ arrangement consisting of 23 countries including Russia and allies will increase production. The result in reduced production of &.2 million barrels per day (mb/d), from the current levels of 7.7 (mb/d) This is expected to help India the world’s third largest oil importer. It looks that Saudi Arabia, the United Arab Emirates, and India found a compromise that nobody was betting on early in the week. And everyone is tired of the roller-coaster rides and the market going negative this year. The market is trading higher in the overnight electronic session with January crude oil currently trading at 4590 which is 26 points higher. The trading range has been 4668 to 4561.

On the Natural Gas front, panic pre-report selling set the tone as bears are trying to tighten their grip as weather models shift to warmer weather. The EIA data really did not help matters much and the outlook until December 10th shows lows in the ! 0’s and 30’s in the Rockies and Plains this morning and lows in Northern Texas in the 20’s. Predictions have temperatures moderating in the next few days and into next week. In the overnight electronic session, the January natural gas is currently trading at 2.510 which is .003 higher. The trading range has been 2.524 to 2.462.

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