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
The Dan Flynn Corn & Ethanol Report
Wednesday March 20th 2013
Spring has sprung. It looks like spring and feels like spring until the wind-chill, chills your bones. Another Artic Front and blizzard conditions in many parts of the country before we can once and for all say good riddance old man winter. In the overnight electronic session the May Corn is currently trading at 731 ¼ which is 2 ¾ cents higher as I write. The trading range has been 731 ¾ to 726 so far. With winter storms reaping havoc in growing areas and other areas pleading for moisture this crazy weather will make this drought memorable as the weather patterns continue to boggle one’s mind. As we head into planting season we can expect delays which will already have a negative impact before the crop is in the ground. Also purchasing countries tenders may not want to honor their bid in lieu of the circumstances. This is a formula for a wild Grain complex ride this summer.
On the Energy Front the API weekly inventories showed a surprising draw of 413 thousand barrels which is a wildly bullish number that stopped bears in their tracks. In the overnight electronic session the May Crude Oil is currently trading at 9336 which is 84 points higher as I write. The trading range has been 9342 to 9242 so far. I still am of the thinking that the data released has caused a knee-jerk reaction to this bullish report on Crude Oil. As the market attempts to achieve new highs I am looking for resistance to stall the market and create a good selling opportunity. The Ethanol market continues to be second hand news and a yawner as other alternative less expensive and more viable alternatives are available and will not create a further shortage in the food chain. The April contract has had no trade in the Ethanol contract with the April Tuesday settlement of 2.605.
Have a Great Trading Day!
The PRICE Futures Group
Questions? Ask Dan Flynn today at 312-264-4374
Futures and options trading involves substantial risk of loss and may not be suitable for everyone. The information presented is from sources believed to be reliable and all information is subject to change without notice.
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