Washington’s Birthday. The Corn & Ethanol Report 02/22/2021

We start off the day with Chicago Fed National Activity Index (JAN) at 7:30 A.M., CB Leading Index MoM (JAN) at 9:00 A.M., Dallas Fed Manufacturing Index (FEB) at 9:30 A.M., Export Inspections at 10:00 A.M., 3-Month and 6-Month Bill Auction at 10:30 A.M., and Fed Bowman Speech at 2:30 P.M.

On the Corn Front were looking at record corn and soybean crops as farmers chase high prices. Chuck Abbott with Successful Farming expects strong exports and the U.S. economy to recover with farmers to plant 92 million acres of corn and 90 million acres of soybeans, pointing to a record soybean crop and the largest corn harvest ever said the USDA last week. Chief Economist Seth Meyer also said farm exports would be a record $157 billion this year, including the largest exports to China of 31.5 billion. In the overnight electronic session, the March corn is currently trading at 545 ½ which is 2.3/4 cents higher. The trading range has been 549 ¾ to 544 ¼.

On the Ethanol Front production dropped to the lowest level in 5 months and stocks grew. The East Coast and Gulf Coast stayed at 12,000 barrels per day with Rocky Mountain and West Coast production levels were unchanged at 9,000 barrels per day. Other news from the EPA will not have the ethanol industry happy is 16 petitions from small refineries that would exempt them from meeting blending obligations under the Renewable Fuel Standard from 2020 are still pending with 66 in total dating back to 2011. There were no trades posted in the overnight electronic session with the April contract settling at 1.729 and is giving no market early with open interest at 43 contracts.

On the Crude Oil Front Texas is still dealing with shortages and price for crude look like they are going to start going back up as demand destruction may even out a little with some of those nasty roads have been taken care of to get a start. Today is the Last Trading Day in the March crude oil and the April contract is currently trading at 6012 which is 85 points higher. The trading range has been 6018 to 5882. If I had solar and wind power this morning, I would have no heat. No sunshine no solar power, no wind- no power. That is Strike 1 and Strike 2 and Strike 3 should be what happened in California with the rolling blackouts in LA and the fires in northern regions. Throw in Texas and any lawmakers try to push this non-sensible energy failure just give them a BIG NO thankyou and voice your facts and opinions.

On the Natural Gas Front, it looks like were losing premium to the market with forecast calling for warming. It could also lead to flooding and other problems we will keep you posted on. Hopefully, we will stay above freezing for most of the coming days for a long time in the overnight electronic session the March natural gas is currently trading at 2.939 which is .130 lower. The trading range has been 3.03o to 2.922.

Have A Great Trading Day!
Dan Flynn

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