Inflation Nation. The Corn & Ethanol Report 12/16/2021

We start off the day with Export Sales, Housing Starts & Permits, Jobless Claims, and Philadelphia Fed Manufacturing index at 7:30 A.M., Industrial Production MoM & YoY (Nov) and Capacity Utilization at 8:15 A.M., Markit Manufacturing PMI Flash (Dec) Markit Services PMI Flash (Dec) and Markit PMI Composite Index at 8:45 A.M., EIA Energy Stocks at 9:30 A.M., Kansas Fed Composite Index (Dec) and Kansas Fed manufacturing Index at 10:00 A.M., 4-Week & 8-Week Bill Auction at 10:30 A.M.

On the Corn Front we saw some fund selling and the futures settled lower. We could not punch through $6 and we settles near key support at 583. Informa will update their estimate of U.S. 2022 planted acres by crop today. The weather forecast is dry and warm so we will see if 583 holds. In the overnight electronic session the March corn is currently trading at 587 which is 1 ¼ of a cent higher. The trading range has been 589 ½ to 585 ½.

On the Ethanol Front inventories has increased higher for the fourth week, rising 2% in the week ended Dec 10^Th even as demand increased for the first time in 4-weeks while total output was down. There were no trades or open interest in the ethanol futures.

On the Natural Gas Front the market is rallying like the stock market as traders liked what the Fed said yesterday. We have the EIA Gas Storage today and the Thomson Reuters weekly poll with 16 analysts participating estimate withdrawals ranging from 99 bcf to 63 bcf with the median withdrawal of 88 bcf and the actual 86 bcf. This compares to the one-year withdrawal of 147 bcf and the five-year average withdrawal of 153 bcf.

Have A Great Trading Day!

Dan Flynn

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