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
The Grain market is looking for a rally and any type of a rally. Our las Crop Progress report for the 2017 growing season showed Farmers will need a little help to move prices higher as these prices are way too cheap. Elevators and Silo’s full and plenty of carryover which should be burned into Ethanol and exported. In the overnight electronic session the December Corn is currently trading at 337 ¾ which is 1 cent lower. The trading range has been 339 ½ to 336 ½. In the long-term this market will seek higher highs but in the near-term the market is exposed in a conundrum of buying value and will keep investors and traders treading water.
On the Ethanol front there were no trades posted in the overnight electronic session. Even while Ethanol output is at all-time highs as we look to export more and more too emerging markets that cannot quench their thirst for product. The December contract settled at 1.384 and is currently showing 2 bids @ 1.370 and 3 offers @ 1.381 with declining Open Interest at 406 contracts.
On the Crude Oil front the fundamentals are the rage. With the Keystone Pipeline mounting traction after a slumber the past eight years or former administration should add to market volatility with OPEC expected to extend production cuts and this market will rally with this news. In the overnight electronic session the December Crude Oil is currently trading at 5788 which is 23 points lower. The trading range has been 5797 to 5742.
On the Natural Gas front the market is rolling again with the post-Thanksgiving rally which is pricing in cold weather that has yet to be forecasted. The December Natural Gas goes off the board today so we will shift are focus to the January contract which is currently trading at 3.092 which is 7 ½ cents higher. The trading range has been 3.096 to 3.028.
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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