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
We jumpstart the day with Export Sales, Initial Jobless Claims and Wholesale Trade at 7:30 A.M. EIA Gas Storage at 9:30 A.M. and the kicker Crop Production USDA Supply/Demand at 11:00 A.M. We have frost followed by snow as farmers try to wrap up harvest. Also reports of high water in the lower Ohio River closed to navigation on Tuesday at locks and dam 52 in Paducah, Kentucky, which is a key Grain shipping waterway. The Grains will focus on the data released at 11:00 A.M. which most traders speculate we will see higher yields on Corn and lower yields on Soybeans and believe this report will be a yawner and not a game changer. In the overnight electronic session the December Corn is currently trading at 348 which is a ¼ of a cent lower. The trading range has been 349 to 346 ¾.
On the Ethanol Report there were no trades posted in the overnight electronic session. The December contract settled at 1.446 and is currently showing 1 bid @ 1.447 and 1 offer @ 1.466 with Open Interest at 1,436 contracts.
On the Crude Oil front we did have a technical key reversal in yesterday’s outside action but the fundamental news is still a driving force to scare the funds and algorithms from front running heavy short positions as they did in yesterday’s trading session. In the overnight electronic session the December Crude Oil is currently trading at 5680 which is 1 tic lower. The trading range has been 5708 to 5669.
On the Natural Gas front we have colder than normal weather conditions for this time of year which will be the first test of the power grid with the retirement of Coal Plants and Natural Gas producers holding back at these price levels. And if the cold weather sticks around for a while we should see a surge in prices in this commodity. Today’s EIA Gas Storage numbers traders are hearing whisper numbers of the lowest injection in a decade with pipeline issues contributing to this puzzle. The Thomson Reuters poll of 23 analyst participating forecast injection builds from 6 to 32 bcf with the median of 15 bcf. This compares to last weeks build of 65 bcf, the 1-year of 54 bcf and the five-year average of 45 bcf. In the overnight electronic session the December contract is currently trading at 3.195 which is 2 cents higher. The trading range has been 3.197 to 3.152.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374
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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
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