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Corn And Ethanol: Turnaround Tuesday

Published 12/01/2020, 09:54 AM
Updated 07/09/2023, 06:31 AM
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On the corn front prices got a boost after exporters reported sales of 140,000 metric tons and 204,000 metric tons or higher to unnamed overseas buyers. Exporters are required to report sales above 100,000 mt to the U.S. Department of Agriculture. Export sales have been great in recent weeks although, exporters have not reported any sales of 100,000 mt of soybeans since Nov. 9.
 
Still the export of corn and soybeans are way ahead of than last year at this point. Export Inspections also improved totaling 890,033metric tons up 832,882 from last week and 439,633 mt from a year ago. Winter Storm watches and warnings expected in southern Kansas and northern Oklahoma. In the overnight electronic session, the March corn is currently trading at 428 ¼ which is 2 ¼ cents higher. The trading range has been 429 to 425 ¾.
 
On the ethanol front Clean energy companies took a nose-dive in yesterday’s action. The selloff was broad-based with WTI down 2.$% during the trading day and a weaker than normal corn market which combined, and the pity party was on. But we hope to see a Turnaround Tuesday. There were no trades posted in the overnight electronic session. The January ethanol settled at 1.350 and is currently showing 1 bid at 1.101 and 2 offers at 1.400 with Open Interest at 44 contracts.
 
On the Crude Oil Front, we have come off the highs made in the overnight with news OPEC+ delays talk which is raising supply alarm. The group was scheduled to meet today, and discussions of key ministers failed to reach a consensus. Whispers are they may meet Thursday to find a face-saving compromise and discuss the importance of the fragile state we are currently in. In the overnight electronic session, the January crude oil is currently trading at 4530 which is 21 points lower. The trading range has been 4570 to 4481.
 
On the natural gas front, oilprice.com reports natural gas demand will grow for decades to come. While recently natural gas was denied transition status by the European Union. They will be drafting more and more new rules as we move forward. There current new rules are unattainable as billions will be lost and investors flock to “transition”  projects label. The technology and research have models that can get net-zero carbon energy by 2050. That could be a game-changer for a long time. In the overnight electronic session, the January natural gas is currently trading at 2.891 which is .009 higher. The trading range has been 2.972 to 2.877.

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