Daniel Flynn
About The Author

Daniel Flynn

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

Happy All Souls Day and congratulations to the city of Houston and showing America what a Champion is made of and it is not hurricane Harvey. We also celebrate All Souls Day and start  off the morning with Export Sales and Initial Jobless Claims at 7:30 A.M., EIA Gas Storage at 9:30 A.M. and Dairy Product Sales at 2:00 P.M. The FED did not raise rates yesterday as we may have an announcement of a new FED Chief today. I still want an investigation of useful idiots and my verdict is “Lock her Up!”

On the Corn front we have more damning news to this oversold market that will be the front-runner in Grains in the long-term. Julie Ingwersen of Thomson Reuters reported that INTL FC Stone raised their Corn yield to 1.737 bushels per acre from the previous monthly report of 1.692 bushels per acre. I believe these numbers will keep the raging bulls soft until reality of global stockpiles diminish when China’s Ethanol mandate takes hold. In the overnight electronic session the December Corn is currently trading at 349 ½ which is 1 ¼ of a cent higher. The trading range has been 350 to 347 ½.

On the Ethanol front there were no trades posted in the overnight electronic session. The November contract expires tomorrow and is currently showing 16 Open Positions left. The December contract settled at 1.451 and is showing 1 bid @ 1.435 and 6 offers @ 1.451 with growing Open Interest at 1,405 contracts.

On the Crude Oil front, is the EIA holding back on draws or miss reporting like CBS or CNN? We could see a makeup call from the umpire in next week’s data. OPEC and non-OPEC countries have been surprisingly compliant to production cuts and proving their margin for error cannot excuse cheating until the market gets back into balance. Especially with demand skyrocketing this would be foolish when most of the Cartel and non-Cartel’s GDP is focused on this export. In the overnight electronic session the December Crude Oil is currently trading at 5435 which is 5 points higher. The trading range has been 5447 to 5399.

On the Natural Gas front we are starting another rally which bottom feeders are wondering is this the last break to the downside as we have had several rallies fail with the reality of weather and weather forecasts. However, like the Corn market we are close to a major bottom and this market is ready to burst out of the seams and producers are hoping to see some heavy profits to cut their losses. Today we have the EIA Gas Storage data and Scott DISavino’s weekly poll from Thomson Reuters with 26 analyst’s participation showing injection builds from 45 billion cubic feet (BCF) to 71 bcf with the median 62 bcf. This compares to last week injection of 64 bcf, the one-year 56 bcf and the five-year average of 60 bcf. If the weather outside is frightful, if indeed LOOK OUT! In the overnight electronic session the December Natural Gas is currently trading at 2.913 which is 2 cents higher. The trading range has been 2.936 to 2.881.

Have a Great Trading Day!
Dan Flynn

Questions? Ask Dan Flynn today at 312-264-4374

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