Dan Flynn is the writer of The Corn & Ethanol Report, a daily market letter covering grains, energies, and various global issues that are the driving force and backbone of the commodity markets. Contact Mr. Flynn at (312) 264-4374
We kickoff the day with CPI and Real Earnings at 7:30 A.M. followed by the EIA Energy Stocks at 9:30 A.M. and Dairy Product Sales at 2:00 P.M. The Stock Market had a rallied early only to selloff on fake, phonies and frauds thanks to the efforts of the Washington Post, Chuck Schumer and Nancy Pelosi. Please stop obstructing justice and our forward progress. As the talks continue to not only benefit the U.S. – Sino trade relations it will also be a boom in the globe in trade relations. U.S. exports are showing that in a time where most investors thought we were sunk and now the tree is looking like we could have an abundance of fruit. As Ronald Reagan once said, that people who don’t believe there are heroes then they don’t know where to look. We are tired of putting our heads in the sand. On the Grain front the complex seems to be looking to buy into the big-picture that free trade is not a dream and it could be realized. On the Corn front in the overnight electronic session the March Corn is currently trading at 386 ¼ which is 1 ½ of a cent higher. The trading range has been 386 ½ to 384 ¾. The market is bracing for more productive talks on trade and expects more positive announcements shortly.
On the Ethanol front there were no trades posted in the overnight electronic session. China is set to triple its Ethanol production capacity threefold and this is just another prosperous sign of exports and another benefit as trade talks continue to move forward. The January Ethanol settled at 1.234 and the market is currently showing 2 bids @ 1.232 and 1 offer @ 1.237 with Open Interest at 1,932 contracts.
On the Crude Oil front the basic fundamentals are starting to be realized with the API showing large draws that were anticipated weeks earlier and as we head into winter with demand increasing whatever the International Energy Agency (IEA) wants to talk prices down global demand is increasing and this is not just a seasonable reason. This morning the U.S. Energy Information Agency (EIA) will release their verdict on the state of supplies. In the overnight electronic session the January Crude Oil is currently trading at 5265 which is 100 points higher. The trading range has been 5280 to 5191.
On the Natural Gas front the market continues to free fall with supply in abundance and the profit center for producers margin are slim to none they will change their focus to other products. In the overnight electronic session the January Natural Gas is currently trading at 4.212 which is 19 ½ cents lower. The trading range has been 4.407 to 4.150.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374