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
Bank Earnings will be monitored in the market today. Also we kick start this morning with Business Inventories, CPI, Real Earnings and Retail Sales at 7:30 A.M. followed with Capacity Utilization and Industrial Production at 8:15 A.M. The Grain complex stopped it’s free-fallen mode for the moment. Dryer weather is forecasted and is prescribed in some flood ravaged areas from the recent heavy rains that the Plains desperately need. In the overnight electronic session the September Corn is currently trading at 375 ¾ which is 6 cents higher. The trading range has been 376 ¼ to 370.
On the Ethanol front we are starting to get a hint of rollovers to come shortly. In the overnight electronic session the August contract is currently trading at 1.534 which is .022 cents higher. The trading range has been 1.534 to 1.533 and is currently showing 4 bids @ 1.511 and 3 offers @ 1.539 with 9 contracts traded and Open Interest at 964 contracts. The September traded 1 contract in the overnight but the volume will pick up the pace in the coming days. The market is trading higher following the advance in Corn, Crude Oil and Gasoline in the overnight electronic session.
On the Crude Oil front the market could use a close above $47 a barrel to get the bulls back and entrenched in the game because of demand concerns will outweigh excess as long as we are below $50 a barrel we will see more production declines and new production to be shelved. In the overnight electronic session the August Crude Oil is currently trading at 4638 which is 30 points higher. The trading range has been 4654 to 4580. The International Energy Agency (IEA) is not helping matters with contradictory quotes on one hand assessing OPEC compliance on production cuts fell to 78% and on the other hand the EIA raised demand estimates and reducing its figure for non-OPEC supply which showed a sizable deficit last quarter.
On the Natural Gas front the market is relying on a stretch of hot weather to mount a sizable rally with abundance of supply and producers standing pat for the moment leveling off production at these prices. We could get a sobering surprise if the power grid is hit with hot weather and exports. At high noon we have rig counts that could spark a rally. In the overnight electronic session the August contract is currently trading at 2.951 which is 1 cent lower. The trading range has been 2.987 to 2.928.
Questions? Ask Dan Flynn today at 312-264-4374
A Subsidiary of Price Holdings, Inc. – an Employee Owned Diversified Financial Services Firm. Member NIBA, NFA
Past results are not necessarily indicative of future results. Investing in futures can involve substantial risk of loss & is not suitable for everyone. Trading foreign exchange also involves a high degree of risk. The leverage created by trading on margin can work against you as well as for you, and losses can exceed your entire investment. Before opening an account and trading, you should seek advice from your advisors as appropriate to ensure that you understand the risks and can withstand the losses.
The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or futures. The Price Futures Group, its officers, directors, employees, and brokers may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction. Reproduction and/or distribution of any portion of this report are strictly prohibited without the written permission of the author. Trading in futures contracts, options on futures contracts, and forward contracts is not suitable for all investors and involves substantial risks. ©2017
SubscribeReceive daily summaries of all Market Insights blog posts.
Enter email below.
Most Recent Posts
- Morning Grains Report 11/22/17
- Morning Softs Report 11/22/17
- Gobble Gobble Rally. The Corn & Ethanol Report 11/22/17
- Hedgers Give Thanks. The Energy Report 11/22/17
- FOAM and Futures! [PRICE Links Video]
- Morning Grains 11/21/17
- Morning Softs 11/21/17
- Harvest Near Complete. The Corn & Ethanol Report 11/21/17