We start off the day with Housing Starts , Initial Jobless Claims, Philadelphia Fed Manufacturing Index (JAN), Building Permits MoM (DEC) and Continuing Jobless Claims (09/JAN) at 7:30 A.M. EIA Energy Stocks at 9:30 A.M., 4-Week and 8-Week Bill Auction at 10:30 A.M., 10-Year TIPS Auction at 12:00 P.M.

On the Corn Front we traded lower the past few sessions and yesterday we saw the funds pitch back about 4,000 contracts that leaves them roughly estimated at 385,000 long. After this drop in 3 consecutive days traders are moving their focus to less the South American weather market back to a demand market. Already whispers that there will be a U.S. acreage duel between corn and soybeans. Farmers and traders believe the South American crop to be lower than the USDA estimate. China corn futures traded 11 cents lower but is still at all-time highs that were really gaining momentum before profit taking began. In the overnight electronic session, the March corn is currently trading at 530 3/3 which is 8 ¾ cents higher. The trading range has been 531 ½ to 519 ¼. Export Sales will be tomorrow due to the holiday, but we may here some chatter of sales today.

On the Ethanol Front in a last-minute biofuel blitz the Trump administration aims to end ethanol warnings on E15 and possible changes to the biofuel-blending mandates. The EPA’s proposal ensure the Biden administration will inherit battles over 16-year-old requirements to blend renewable fuels into gasoline and diesel that is always a hot topic. There were no trades posted in the overnight electronic session. The April ethanol settled at 1.663 and is currently showing 1 bid @ 1.560 and 2 offers @ 1.749 with Open Interest at 45 contracts.

On the Crude Oil Front the announcement of the Keystone Pipeline and going back to The Paris Agreement was not go down as a fight. Canada, the province of Alberta where the Sands are, Prime Minister Justin Trudeau are not in such a hurry to comply with the new administration’s request as they see streams of revenue going down the drain. The Paris deal is a raw deal for the U.S., the highest contributor and highest regulated on emissions, so all environmentalist you are not helping the science wind can blow here and if we shut down, they get the jobs, and we get to pay them more money for that thank you and we get to pay higher at the pump because we are not energy independent. When you add it all up this should have stayed in history. In the overnight electronic session, the March crude oil is currently trading at 5309 which is 22 points lower. The trading range has been 5324 to 5275.

On the Natural Gas Front this market is wondering what is next as well. The markets in Asia, EU, UK, and U.S. are so interconnected to incentive cargoes going to the coldest part of the map. This is to cargoes taking advantage of LNG prices surging and take advantage of the vast area to cover with those for points the starters point. With that large of a span to cover weather and product logistics, which is a big job. Even with the weather volatility, traders do expect more to continue along with higher prices. In the overnight electronic session,  the February natural gas is currently trading at 2.490 which is .049 lower. The trading range has been 2.551 to 2.460.

Have A Great Trading Day!
Dan Flynn