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
After yesterday’s sell-off in Stocks we had a continuation in the Pacific Rim markets with more earnings on tap today. Tech Stocks led the way for the correction. In the overnight electronic session the March Corn is currently trading at 355 ¼ which is 1 ½ of a cent higher. The trading range has been 356 to 353. Investors will keep a keen eye on tomorrows Export Sales and Tuesday we have the last Crop Production USDA Supply/Demand for 2017 and investors are hoping to see signs of movement in product.
On the Ethanol front there were no trades posted in the overnight electronic session. The January contract settled at 1.358 and is currently showing 1 bid @ 1.355 and 2 offers @ 1.360 with Open Interest at 1,240 contracts.
On the Crude Oil front the market held its own after a whopper of an API number with large draws in Crude and large builds in Products. Quite frankly these numbers do not add up, especially after the government releasing Strategic Petroleum Reserves (SPRs) to help in the wake of large draws with the OPEC production cuts. However, it was the Asian markets that was the straw that broke the camel’s back and we sold off in the overnight electronic session. The January Crude Oil is currently trading at 5686 which is 76 points lower. The trading range has been 5757 to 5671.
On the Natural Gas front the January contract is currently trading at 2.954 which is 4 cents higher. The trading range has been 2.961 to 2.905. If the cold weather holds it could trigger higher prices that we have not seen in a long time. Although AECO was quoted that persistent structural congestion within the Western Canadian gas pipeline system will be hard to paint a bullish picture even in cold weather scenarios.
Buckle Up Your Chinstrap!
Have a Great Trading Day
Questions? Ask Dan Flynn today at 312-264-4374
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