Same Old Song Inflation Nation Is Growing. The Corn & Ethanol Report 01/14/2022

We kickoff the day with Retail Sales MoM (Dec), Retail Sales Ex Autos MoM (Dec), Import Prices MoM & YoY (Dec), Export Prices MoM & YoY (Dec), Retail Sales Ex Gas/Autos MoM (Dec), Retail Sales YoY (Dec) at 7:30 A.M., Industrial Production MoM & YoY (Dec), Manufacturing Production MoM & YoY (Dec) and Capacity Utilization at 8:15 A.M., Michigan Consumer Sentiment Prel (Jan), Fed Harker Speech, Business Inventories MoM (Nov), Michigan 5-Year Inflation Expectations Prel (Jan), Michigan Consumer Expectations Prel (Jan), Michigan Consumer Current Conditions Prel (Jan), Michigan Inflation Expectations Prel (Jan) and Retail Inventories Ex Autos MoM (Nov) at 9:00 A.m., Fed Williams Speech at 10:00 A.M., baker Hughes Oil & Total Rig Count at 12:00 P.M.

On the Corn Front the market slipped below 590 in yesterday’s action. Meanwhile we are counting on exports to pick up, which they have, China still needs to complete Phase 1 of the Trade Agreement which has fallen roughly $16 billion. Brazil’s Rio Grande do Sul corn harvest reached 20% complete as of January 13^th which was up 7%. In the overnight electronic session the march corn is currently trading at 589 ¾ which is 2 ¼ cents higher. The trading range has been 590 to 585 ¼.

On the Ethanol Front producers to electronic car makers, ‘Were greener than you are. “ The ethanol industry said on Wednesday that biofuels will be an important tool against global warming, and arguably create less pollution than battery-powered vehicles. The comparison was based on the life-cycle costs for power sources, starting stations for electricity and cornfields for ethanol. There were no trades or open interest in ethanol futures.

On the Crude Oil Front China agrees with the U.S. to release oil reserves near the Lunar New Year. The start of the holiday is February 1st of a plan coordinated by the United States and other major consumers to reduce global oil prices. Yes that is trying to put a band-aid on a gaping wound with no stitches. In the overnight electronic session the February crude oil is currently trading at 8205 which is 7 points lower. The trading range has been 8335 to 8158.

On the Natural Gas Front the market rallies and boomerangs back. Let’s see if we get a late weather rally heading into the long holiday weekend. In the overnight electronic session the February natural gas is currently trading at 4.173 which is 0.092 lower. The trading range has been 4.305 to 4.097.

Have A Great Trading Day!

Dan Flynn

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