A lot Of Wildcards In Corn. The Corn & Ethanol Report 01/21/2022

We start off the day with Export Sales at 7:30 A.M., CB Leading Index MoM (Dec) at 9:00 A.M., NY Fed Treasury Purchases 0 to 2.25 yrs. at 9:30 A.M., Treasury Secretary Yellen Speech at 10:30 A.M., Baker Hughes Oil & Total Rig Count at 12:00 P.M. and Cattle on Feed at 2:00 P.M.

On the Corn Front we had a mixed market session yesterday. China’s corn prices are near $11.00 while Brazil’s prices are near $8.00 and Matif corn prices were higher due to EU need for corn. Some feel the Russia-Ukraine conflict will reduce Ukraine exports to the EU. China wants to jump to Phase 2 of the Trade Agreement before satisfying their commitment to Phase 1 of The Agreement. This should be extremely bullish watching the harvest in South America and the cause and effect of foreign policy or lack thereof. In the overnight electronic session the March corn is currently trading at 608 ½ which is 2 ½ cents lower. The trading range has been 610 ½ to 604 ¼.

On the Ethanol Front stocks grow as production climbed last week. The EIA said that domestic supply hit a 48-week high at 23,592 barrels, an increase of 681,000 on the week but a decrease of 100,000 on the year. The Renewable Fuels Association says net input by refiners and blenders and gasoline supplied to the market were both above a week ago and a year ago levels. Production averaged 1.053 million barrels a day, 47,000 above a week ago and 112,000 than last year. There were no trades or open interest in ethanol futures.

On the Crude Oil Front the rally stalled with being overbought and the February contract expiring. Some technical traders believe we have hit a high and achieved a top. I believe fundamentals will reign supreme and we will be above $100 a barrel very shortly. In the overnight electronic session the march crude oil is currently trading at 8493 which is 62 points lower. The trading range has been 8534 to 8278.

On the Natural Gas Front after selling off the market is not exactly a 180 degree turnaround, but this has become a weather market with the extreme cold. In the overnight electronic session the February natural gas is currently trading at 3.902 which is 0.100 higher. The trading range has been 3.966 to 3.833.

Have A Great Trading Day!

Dan Flynn

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