Trade Winds Are Changing. The Corn & Ethanol Report

We started off the day with Export Sales at 7:30 A.M., Market Composite PMI Flash (JAN), Market Manufacturing PMI Flash (JAN), Market Services PMI Flash (JAN) at 8:45 A.M>, Existing Home Sales MoM and Existing Home Sales for December at 9:00 A.M., EIA Gas Storage at 9:30 A.M., EIA Energy Stocks 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 gained back portions of this week’s losses in yesterday’s trading session. This market is no different to commodities cause and effect in one commodity is stronger by using parts of its breakdown to add to another commodity that can be scrutinized and used, with the new trade winds being advertised and some of those commodities listed are going to be shelved. The Grain complex is waiting to hear the POTUS next move that could change trade as we saw it in this grain run-up. In yesterday’s action the market was in chop mode early but consolidated to the recent losses. This morning’s export sales may put back some faith in buyers. But remember that the breadbasket to America is the farmer and they are concerned about high energy prices and rightfully so. Let’s hope we bring in the new and not bring in the old of zero revenue and outdated and unwise regulations. In the overnight electronic session, the March corn is currently trading at 519 ¾ which is 4 ½ cents lower. The trading range has been 522 ¾ to 518.

On the Ethanol front, this is another industry that is begging for attention. Weekly ethanol production is expected to be down with builds in stocks, I am not thinking builds in stocks at the moment, but anything is possible. We still want to see idle ethanol plants getting back online and producing. With the beginning of 2021, we have a lot of work to do. There were no trades posted in the overnight session. The April contract settled at 1.663 and is currently showing 1 bid @ 1.531 and 2 offers @ 1.749 with Open Interest at 45 contracts.

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