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Corn And Ethanol: The World Is Waiting

By Dan FlynnCommoditiesDec 09, 2020 08:55AM ET
www.investing.com/analysis/corn-and-ethanol-the-world-is-waiting-200547357
Corn And Ethanol: The World Is Waiting
By Dan Flynn   |  Dec 09, 2020 08:55AM ET
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On the corn front nothing but good news for farmers and we will globally be watching weather as to cash in on the best crops to come in a Sellers’ Market. Tomorrows USDA & WASDE Reports could really factor in a bull run. With harvest quality very high after a tough growing season the U.S. crop produced record amounts of corn and soybeans. With the best news is there are customers ready to buy. After years of ending stocks no worries and talk of carryovers way to high, we have a new market with plenty of buyers and we need to replenish ending stocks for feed and ethanol. In the overnight electronic session, the March corn is currently trading at 420 ½ which is ¾ of a cent higher. The trading range has been 422 ½ to 419 ¾.

On the ethanol front biofuels are the story. Erin Voegele with Ethanol Magazine reported that ENERKEM and strategic partners Shell (LON:RDSa), Suncor, PROMAN and Hydro-Quebec on Dec. 8, announced plans to develop a CAD $875 biorefinery in Varennes, Quebec, that can produce 125 million liter’s (33.02 million gallons) of advanced biofuels, including methanol and ethanol, via a proprietary theological technology. This shows there is big interest in biofuels globally. There were no trades posted in the overnight electronic session. The January ethanol settled at 132.0 and the market is currently showing 1 bid at 1.907 and 2 offers at 1.400 with Open Interest at 32 contracts.

On the crude oil Front the API data showed builds in crude oil of 1.141M, Cushing showing draws of 1.845M, Gasoline builds of +6.442M, and Distillates gaied +2.316M. The market looks poised to see the vaccines release and all the people have an opportunity to take it yet. To be resolved with another government slowdown ahead of are relief checks. The people are ready to go back to work, With the fear factor in the market today is oversupply. What a difference a day makes. We have the EIA Energy Stocks and we will see how anxious traders are going to ride their course or reevaluate their data. In the overnight electronic session, the January crude oil is currently trading at 4566 which is 6 points higher. The trading range has been 4624 to 4533.

On the natural gas front the market is oversold and profit taking is the name of the game, early in this morning’s trading. Tomorrows EIA Gas Storage report where expectations are leaning to the bearish side with weather concerns, may have a surprise. The profit takers will look to short more after covering shorts. After the number they will short more spot market or revaluate. In the overnight electronic session, the January natural gas is currently trading at 2.485 which is .086 higher. The trading range has been 2.497 to 2.434.

Corn And Ethanol: The World Is Waiting
 

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Corn And Ethanol: The World Is Waiting

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Carmita Tita
Carmita Tita Dec 14, 2020 8:12AM ET
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