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
Yesterday’s Crop Production USDA Supply/Demand showed record yields that surprised a lot of investors and traders alike. After looking at the numbers I was surprised we did not trade even lower even with the market getting broadsided. A trader friend reminded me that commercials, funds and most investors are wary selling this far in the hole with very limited profit potential on the downside. In the overnight electronic session the December Corn is currently trading at 341 ¼ which is a ¼ of a cent lower. The trading range has been 342 to 341.
On the Ethanol front there were no trades posted in the overnight electronic session. The December contract settled at 1.440 and is currently showing 1 bid @ 1.436 and 2 offers @ 1.460 with Open Interest at 1,258 contracts.
On the Crude Oil front the December contract is currently trading at 5716 which is sharply unchanged. The trading range has been 5730 to 5697. I do expect a higher close today with bullish fundamental news and I cannot see a trader or investor want to carry a short position over the weekend with the geo-political risk with mounting in the Middle-East.
On the Natural Gas front I saw snowflakes this morning and I do not mean antifa. Differing weather forecast has temperatures rising next week or on the other hand Jack Frost is here to stay. In the overnight electronic session the December Natural Gas is currently trading at 3.180 which is 2 cents lower. The trading range has been 3.224 to 3.177.
Happy Veterans Day to our Men and Woman who served this Great Country in Uniform!
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374
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