Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Corn And Ethanol: Increased Demand On The Horizon?

Published 11/02/2020, 10:27 AM
Updated 07/09/2023, 06:31 AM

On the corn front we are extending the retreat this morning, but whispers abound that we will have big demand coming back to the market and should buoy prices. In the overnight electronic session, the December corn is currently trading at 394 ¼ which is 4 ¼ cents lower. The trading range has been 396 ¼ to 393 ¼.

On the ethanol front Kentucky has been witnessing increases for ethanol biofuels sales jobs. The USDA announced the investment the Trump administration providing for rural businesses the grant which is helping corn and soybean demand. Ray Allen Mackey chairman for the Kentucky Corn Promotional Council and a farmer said,” We see improved availability of mid-level blends of ethanol is important for three reasons, It has a proven ability to clean our air, and improve are health. Number two, it gives consumers more choices at the pump. Finally, it revitalizes and adds value and improves the rural economy,” Mackey said. There were no trades posted in the overnight electronic session. The December contract settled at 1.380 and is showing 0 bids and 0 offers with Open Interest at 43 contracts.

On the crude oil front the market started trading in the abyss with more national lockdowns in Europe because of another round of COVID-19 cases. This time it was in the U.K. following Frances and Germany’s lead. The stock market brought the crude oil back, but we will be watching a host of news stories pretty much ranging on supply and demand with critical information and how it will play out and either raise or lower prices. In the overnight electronic session, the December crude oil is currently trading at 3557 which is 22 points lower. THE TRADING RANGE HAS BEEN 3595 TO 3364.

On the natural gas front the market is taking in on the chin in the early going with the December contract currently trading at 3.245 which is 0.108 lower. The trading range has been 3.393 to 3.238. A couple of things to look at with the beginning of Heating Season and Hedge Funds long natural gas. We expect demand to rise, with lower production and anticipation of colder temperatures should give the market a boost.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.