Winter Storm 2021. The Corn & Ethanol Report

We started off the day with Fed Barkin Speech at 7:00 A.M., Export Sales at 7:30 A.M., Market Composite PMI Flash (FEB), Market Manufacturing PMI Flash (FEB), and Market Services OMI Flash at 8:45 A.M., Existing Home Sales (JAN)at 9:00 A.M., Fed Rosengren Speech at 10:00 A.M., Baker Hughes Oil & Total Rig Count at 12:00 P.M., and Cattle on Feed at 2 :00 P.M.

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On the Corn front, we were flat yesterday with freeze may firm ahead of the USDA Supply/Demand outlook. There are still concerns about the freeing and tightening of global supply. Texas is taking round 2 of this winter monsters and there is talk of forecasts for warmer weather early next weekend that should help for food, water, electricity, driving, and getting the streets cleaned. We could use a good number on the export sales to put a positive spin in the market and rekindle bullish buyers. In the overnight session the March 551 ¼ which is 1 cent. The trading range has been 551 ¾ to 545 ¾.

On the Ethanol front, the February contract expires and the big story is Corn Growers E15 testing in California. More tests are underway said Tom Gillis who is on the Wisconsin Corn Promotion Board and the National Corn Growers Ethanol Action Group. What remains unclear is if testing will lead California to long-term use of U.S. corn-based or Brazilian Sugarcane-based ethanol as the sugarcane generates more carbon credits than corn-based ethanol under California’s Low Carbon Fuel Standard that Governor Gavin Newsome issued an executive order that all new vehicles sold in California by 2035 have to be carbon zero. That’s quite a lofty goal and you look at this track record history of dictating policy in California is not an attractive picture, so why don’t you take this slow and easy. There were no trades posted in the overnight electronic session. The April ethanol settled at 1.729 and is showing no activity thus far with Open Interest at 43 contracts.

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