Fed & Ukraine On Markets Mind. The Corn & Ethanol Report 01/31/2022

We start off the day with Chicago PMI (Jan) at 8:45 A.M., Dallas Fed Manufacturing Index (Jan) and NY Fed Treasury Purchases 2.25 to 4.5 yrs. at 9:30 A.M., Export Inspections at 10:00 A.M., 3-Mont & 6-Month Bill Auction and Fed Daly Speech at 10:30 A.M., Fed George speech at 11:40 A.M.,  and Cattle Inventory data at 2:00 P.M.

On the corn Front we finished higher on Friday on the heels of China buying US soybeans. This trend with exports should continue with South American tight supplies which is also affecting their domestic market. Lets throw in the Ukraine and Black Sea export fears that could be real if a war does break out. We are seeing large follow through with the soybean rally and corn be following and maybe leading

In the near future. In the overnight electronic session the March corn is currently trading at 637 which is 1 cent higher. The trading range has been 642 ½ to 634 ½ and we are seeing this cost and carry market is rising.

On the Ethanol Front the USDA released its Grain Crushings and Co-Products Production report for January, reporting corn use for ethanol production in November. We have a very active cash market but there remains no trades or open interest in ethanol futures.

On the Crude Oil Front the Ukraine are really knocking this market out of the park. Not to steal the Beatles lyrics but this is proof in the pudding of the energy disaster unfolding when any word event shakes the market. I still remain wildly bullish for many reasons. And the Ukraine only shows how acute the sensitivity to any risk factor in the market which is adding premium to a bullish fundamental market. In the overnight electronic session the March crude oil is currently trading at 8751 which is 69 points higher. The trading range has been 8816 to 8681.

On the Natural Gas Front the market is rolling as President Putin is flexing his power called energy and Europe hangs in the balance of his whims. The US is in winter and battling snow and cold weather in the lower 48 and with this current situation we could see exports rise to ease Europe’s burden. In the overnight electronic session the March natural gas is currently trading at 4.867 which is 0.228 higher. The trading range has been 5.057 to 4.786.

Have A Great Trading Day!

Dan Flynn

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