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 this morning with Business Inventories and Retail sales followed by Capacity Utilization and Industrial Production at 8:15 A.M. December Grains go off the board today. Tariffs and Trade talks are in a delicate balance and with China reducing tariffs on American-made cars is music to negotiators ears as talks and meeting of the minds continue. Soybean exports are in the beginning stages of what looks like a bright future with trade and an honest partnership. This straighten up and fly right mood should open many other trading doors. And I am talking about Ethanol which most definitely be a boon to the Corn market and possibly become believe it or not a bigger headline than Soybeans.
Speaking of Corn in the overnight electronic session the March Corn is currently trading at 386 ¼ which is 2 cents higher. The trading range has been 386 ½ to 383.
On the Ethanol front all systems are go! The market is expecting a boon to exports moving this product north, south-east or west. The Corn based product the U.S. produces versus the Brazilian Sugar based product will capture the eyes of consuming counties. In the overnight electronic session the January Ethanol is currently trading at 1.261 which is .011 higher. The trading range has been 1.261 to 1.249 with 7 contracts changing hands and Open Interest declining to 1,714 contracts. The market is currently showing 8 bids @ 1.257 and 3 offers @ 1.263.
On the Crude Oil front the market is starting to show signs and coming to grips with the fundamental outlook. Demand is increasing and production cuts on the table is a perfect recipe for higher prices in the future. In the overnight electronic session the January contract is currently trading at 5245 which is 13 points lower. The trading range has been 5295 to 5211.
On the Natural gas front there are no worries about production shortages and the market is showing it as product will be swimming as consumers will be attracted to cheap prices and producers will be inclined to move product and clear the shelve for more product on the way. In the overnight electronic session the January Natural Gas is currently trading at 3.949 which is 17 ½ cents ower. The trading range has been 4.094 to 3.909.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374