Calm After The Storm? The Corn & Ethanol Report 12/02/2021

We start off the day with Challenger Job Cuts (Nov) at 6:30 A.m., Export Sales, Initial Jobless Claims (27/Nov), Jobless Claims 4-Week Average (Nov/27) and Continuing Jobless Claims (20/Nov) at 7:30 A.M., NY Fed Treasury Purchases TIPS 7.5 to 30 yrs. and EIA Gas Storage at 9:30 A.m., Fed Quarles Speech at 10:00 A.M., Fed Bostic Speech, Fed Harkins Speech, Fed Daly Speech, 4-week & 8-Week Bill Auction at 10:30 A.M.

On the Corn Front after two years of strong market prices, U.S. farmers will expand plantings significantly in 2022, with the corn area rising 3% despite higher fertilizer costs, said Scott Irwin with the University of Illinois. Some projections have farmers shying away from corn, the most widely grown crop in the country in 2022 because of higher input costs and put land into crops such as soybeans, wheat and cotton instead, reports Chuck Abbot with Successful Farming. In the overnight electronic session the March corn is currently trading at 577 ¾ which is 6 ¼ cents higher. The trading range has been 579 ½ to 569 ½.

On the Ethanol Front production hit multi-week lows with stocks rising. The EIA said production averaged 1.035 million barrels a day, a seven week low and down 44,000 on the week, partially due to Thanksgiving, but up 105,000 on the year. The domestic supply notched a twelve-week high ar 20,301 million barrels, an increase of 137,000 from a week ago, but a decrease from a year ago. There is still zero open interest in ethanol futures.

On the Crude Oil Front Russia and OPEC+ announced today that they may hike production and that furthered the correction. To the downside. In the overnight electronic session the January crude oil is currently trading at 6482 which is 75 points lower. The trading range has been 6736 to 6243. The wide ranges continue.

On the Natural gas Front the market is attempting to stabilize after the thrashing it has taken the last few days. Today we have the EIA Gas Storage and the Thomson Reuters poll with 16 analysts participating estimate withdrawals of 64 bcf to 31 bcf with the median 58 bcf and actual 57 bcf. This compares to the one-year withdrawal of 78 bcf and the five-year average withdrawal of 55 bcf. In the overnight electronic session the January natural gas is currently trading at 4.304 which is 0.046 higher. The trading range has been 4.335 to 4.123.

Have A Great Trading Day!
Dan Flynn

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