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
Today we have the EIA Energy Stocks at 9:30 A.M. after a not so bullish API number with the build in Gasoline disappointing for bulls. The API showed draws in Crude of 1.562 million barrels, Gasoline showed builds of 520 thousand barrels, Distillate showed draws of 3.133 million barrels and Cushing Oklahoma builds of 812 thousand barrels. We also have Dairy Product Sales today at 2:00 P.M.
On the Corn front, good news on the horizon for demand in the future. We are also expecting a frost in the Mid-West ahead of tomorrow’s Crop Production USDA Supply/Demand. Dominique Patton with Thomson Reuters reports that China’s State Development & Investment Corporation (SDIC) signed a framework agreement to build a 600,000-tonne Ethanol plant in the northeastern Heilongjiang province, as the company pushes to dominate the country’s growing Ethanol Industry. Their aim is to produce 4 to 5 million tonnes of Ethanol a year in the next 3 to 5 years and the new facility will use 1.85 million tonnes of Corn a year. This is music to Corn Growers ears as carryover has continued to cut profit margins. In the overnight electronic session the December Corn is currently trading at 347 which is ¾ of a cent lower. The trading range has been 347 ¾ to 346 ½.
On the Ethanol front this should not be bad news for exporting to China because they will always have an appetite for product with the direction they are moving. Even with China’s talk of electronic cars, let’s face it folks unless some new technology comes along the infrastructure is just not in place. In the overnight electronic session the December Ethanol is currently trading at 1.460 which is .008 of a cent lower. The trading range has been 1.460 to 1.459 with 4 contracts traded. The market is currently showing 2 bids @ 1.452 and 1 offer @ 1.467 with Open Interest at 1,511 contracts.
On the Crude Oil front we wait for the EIA data that was weak versus the API data last week and we may get a make-up call this week. OPEC Cuts are solid and on the geo-political stage we have bullish fundamentals. In the overnight electronic session the December Crude Oil is currently trading at 5704 which is 16 points lower. The trading range has been 5714 to 5680.
On the Natural Gas front we are anticipating a bullish injection number on tomorrow’s EIA Gas Storage. That coupled with colder than normal temperatures could create a spike in the market. In the overnight electronic session the December contract is currently trading at 3.142 which is 1 cent lower. The trading range has been 3.154 to 3.114.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374
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