We kicked off the day with Export Sales, Initial Jobless Claims, Jobless Claims 4-Week Average, and Continuing Jobless Claims at 7:30 A.M., EIA Natural Gas Stocks at 9:30 A.M., 4-Week & 8-Week Bill Auction at 10:30 A.M., and 30-Year Bond Auction at 12:00 P.M.

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On the Corn Front yesterday’s USDA & WASDE data were not a complete surprise. Exports were down and Brazil unseats the US as the top global corn exporter. The USDA made sweeping cuts to 2022/23 Argentine corn and soybeans production that caused global ending stocks for both crops tighten the WASDE report. The USDA’s downward revisions were higher than the market had been anticipating, but any potential bullish price action was largely offset cuts to US corn and soybean usage for ethanol and crush processing, respectively. In the overnight electronic session the March corn is currently trading at 677 ½ which is 1 cent lower. The trading range has been 679 ¾ to 675 ¼.

On the Ethanol Front production and stocks were down on the week. The US Energy Information Administration (EIA) said production averaged 1 million barrels a day, 28,000 on the week as major indicators pointed to slower demand. That was up 6,000 barrels a day on the year. The domestic ethanol supply was reported at 24.417 million barrels, a decrease of 25,000 from the previous week and 382,000 below a year ago. The USDA expects 5.25 billion bushels of corn to be used for ethanol production this marketing season, 50 million in January. There were no trades in ethanol futures.

Analysts expect draws in the EIA Natural Gas Stocks 198 bcf.

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