Corn & Ethanol Report, Market Commentaries, The Corn & Ethanol Report, Trading-Futures

Happy Hanukkah! The Corn & Ethanol Report 12/11/2020

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We start off the day with PPI at 7:30 A.M., Michigan Current Conditions Prel (DEC), Michigan Inflation Expectations Prel (DEC), Michigan 5-Year Inflation Expectations Prel (DEC),  Michigan Consumer Sentiment Prel (DEC), and Michigan Consumer Expectations Prel (DEC) at 9:00 A.M. Ged Quarles Speech at 11:40 A.M., followed by the Baker Hughes Oil & Total Rig Count at 12:00 P.M.

On the Corn Front the Supply/Demand report had a few changes keeping corn carryout at 100 mil. bushels and lowering soybean carryout to 175 and wheat carryout to 862.USDA left China soybean imports to 100 mmt. And increased corn imports to 165 and the USDA left the Brazil crop at 133 mmt.  The key to pricing is the South American weather and how deep the pockets of the Chinese which will be purchasing ag/feed products. Joe Biden also pointed out he may not be in a hurry to change Phase 1 of the Trade Agreement immediately. Expectations he will start on domestic issues with the coronavirus issues and let’s get the Vaccines properly dispersed quickly and let those who want to take it. This could be great news for the bulls. In the overnight electronic session, the march corn is currently trading at 420 which is 1 ¼ of a cent. The trading range has been 423 ¼ to 418.

On the Ethanol Front, U.S. fuel ethanol increased by nearly 2% the week ending 12/4, according to data released by the EIA yesterday. The 12/9 stocks were up approximately 4%. Production averaged 991,000 barrels per day up 17,000 (bpd) from last week and down 81,000 (bpd) from last year. The good news is the production has stabilized in recent months after falling to historic lows in spring 2020 caused by the hard-hitting impact of COVID-19. There were no trades posted in the overnight electronic session. The January ethanol settled at 1.320 and the market is currently showing 1 bid @ 1.097 and 2 offers @ 1.400 with Open Interest at 32 contracts.

On the Crude Oil Front, oil jumps on talk of progress in stimulus. You remember stimulus?  That is what the politicians were holding in front of our nose’s pre-election. Let’s hope we get the money where it supposed to go and if we rollout vaccines this could be the beginning of the end of this madness. I glad the private sector understood Warp Speed. In the overnight electronic session, the crude oil looks like it’s perched waiting to get a good headline and shoot for $50 a barrel like Brent achieved in yesterday’s action. The January crude oil is currently trading at 4672 which is 6 points lower. The trading range has been 4729 to 4637.

On the Natural Gas Front, the market is back to trading higher after being oversold on mild weather. Yesterday the EIA Gas Storage saw a bigger withdrawal at 91 bcf when the street was looking for draws around 8 bcf That pretty much sent in another round of short covering. In the overnight electronic session, the January natural gas is currently trading at 2.581 which is .028 higher. The trading range has been 2.628 to 2.526.

Have A Great Trading Day!
Dan Flynn

Questions? Ask Dan Flynn today at 312-264-4374  
 
 
 

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