12/12/2024 Dressed to Impress, Cash Cattle Moving

On the Grains
Good morning, yesterday’s attempt to take out the resistance on corn proved to be unsuccessful, and more ammunition is needed at this time to get the job done. Yesterday’s EIA report supports the ethanol grind as the total production was 1.08 million barrels a day (MBD) or up two million gallons for the week. While we hope the ethanol number works higher and the carryout lower, the last two weeks have been essentially unchanged from last year. Margins will need to improve to see that gain any momentum. Bottom line, we may have just seen the highest usage number in print this week and any increases from the ethanol industry might be a slow go. Sure, there is always the possibility of lower total U.S. production in January, but I wouldn’t bet the farm on a huge cut as the yield was surprisingly good for the rain we received. Funds are estimated to be long 135,000 contracts of corn, bulls need to be fed.