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 Export Sales and Jobless Claims at 7:30 A.M. followed by the EIA Gas Storage at 9:30 A.M. The Grain complex is taking a cautious approach to the high level big stakes trade talks that are moving rapidly on a positive note. There are still concerns of forward progress could be slowed with the detained China executive Meng Wanzhou for an alleged cyberspace scheme with the Iranian government. This situation is keeping veteran Grain traders from putting the pedal to the metal. Tomorrow is Last Trading Day in all December Grain contracts. On the Corn front the March contract is currently trading at 385 ¼ which is unchanged. The trading range has been 386 to 384.
On the Ethanol front an Ethanol plant and Natural Gas pipeline is planned to be built within an 18 month time frame in Napa Junction and the process is moving rapidly. The location seems to be ideal where Napa Junction’s location lies on the California Northern Railroad and close to the Pacific which could expedite movement in product and exports with China in mind. In the overnight electronic session the January Ethanol is currently trading at 1.264 which is .009 higher. The trading range has been 1.264 to 1.256. 56 contracts changed hands and Open Interest is at 1,799 contracts. The market is currently showing 1 bid @ 1.259 and 2 offers @ 1.263.
On the Crude Oil front the insanity continues as the market has dissed the basic fundamentals with hedge funds bubbles bursting left and right casting a pall on free trade. And you can count on one thing is when the maneuvering is done this market will skyrocket. In the overnight electronic session the January Crude Oil is currently trading at 5071 which is 44 points lower. The trading range has been 5157 to 5035.
On the Natural Gas front the news of the building of the Ethanol plant in Napa which will now be known for more than wine will need a Natural Gas pipeline to build this plant as soon as possible with these aggressive plans deem appropriate. The overall tone in the market is still bearish. However, with the news of more product moving, in the overnight electronic session the January contract is currently trading at 4.281 which is 14 ½ cents higher. The trading range has been 4.298 to 4.050. We also have the EIA Gas Storage data to be released at 9:30 A.M. and the Thomson Reuters poll with 18 analysts participating expect draws anywhere from 74 bcf to 102 bcf with the median 84 bcf. This compare to the one-year withdrawal of 166 bcf and the five-year average of 144 bcf.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374