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
Santa Ana Winds destroying the wine fields in Napa Valley and the destruction of life as we have seen with the destruction we have witnessed in this active hurricane season. Our prayers go out to the persons affected by these Acts of God and the First Responders giving it their all to say lives. On the Corn front yesterday’s Reuters poll showed harvest at 27% complete with 62 % rated good to excellent. While Corn harvested and condition vary from state to state and county to county and the heavy rains should slow down the harvest which should create some sort short covering. With the market not responding ahead of tomorrow’s Crop Production USDA Supply/Demand data. In the overnight electronic session the December Corn is currently trading at 347 ¾ which is 1 ½ of a cent lower. The trading range has been 349 to 347.
On the Ethanol front the November contract posted a trade at 1.424 which is .004 of a cent higher. The market is currently showing 1 bid @ 1.424 and 1 offer @ 1.429 with 2 contracts traded and declining Open Interest at 1,012 contracts. This market is poised to take off in the next few years with China importing and implementing Ethanol in their fuel standard in this emerging market and could accelerate a bullish tone and be a long-term bottom in this market and the Corn market.
On the Crude Oil front the investors in this market are slowly coming to the realization of shortages ahead. With a wide Brent Crude WTI Crude spread we should see more exports and expect OPEC to stand firm on production cuts. This is a changing of the guard of bearish sentiment. In the overnight electronic session the November Crude Oil is currently trading at 5102 which is 10 tics higher. The trading range has been 5142 to 5081. At 3:30 P.M. today we will have the weekly API Energy Stocks data which I expect further bullish news.
On the Natural Gas front the market has raised eyebrows again catching investors short when they were bulls and did not want to get fooled again. But getting caught long or short and trying to bottom feed bullish sentiment went to the wayside and bulls got caught being bears. Just when you thought it was safe to get back in the water… Bullish fundamentals in the next few years should get this market and the complex rolling. In the overnight electronic session the November Natural Gas is currently trading at 2.931 which is 4 cents higher. The trading range has been 2.946 to 2.876.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374
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