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 Dan Flynn Corn & Ethanol Report Yes it was 76 years ago we got our education we were going to enter the Great World War II due to the sneak attack on Pearl Harbor. It was 86 years plus that a Democratic congressman from Georgia, Carl Vinson had the vision of a fascist Germany and Japan posed existential threats to the United States and politicised to build a two-ocean Navy as he had the foresight we would be fighting a war on two fronts, even though we are separated by oceans Atlantic and Pacific.
On the Grain front the market really took it on the nose in yesterday’s trading session. Any rally for a couple of days is wrought with selling. This morning we have Export Sales and transports to the west may be more difficult with the Wild Fires burning out of control in Southern California. In the overnight electronic session the March Corn is currently trading at 352 ¼ which is ½ of a cent lower. The trading range has been 353 ½ to 351 ¾.
On the Ethanol front there were no trades posted in the overnight electronic session. The market settled at 1.317 and is currently showing 1 bid @ 1.318 and 2 offers @ 1.327 with Open Interest hovering around 1,328 contracts.
On the Crude Oil front the market is trading a little higher in the overnight electronic session after being pummeled like the Grains in yesterday’s action. Traders may have overdone it with lighter holiday volume and we could chart a course for higher prices again. The January contract is currently trading at 5614 which 18 tics higher. The trading range has been 5630 to 5582.
On the Natural Gas front the cold weather is not dampening the bears spirits as the January contract is currently trading at 2.842 which is 8 cents lower. The trading range has been 2.922 to 2.810. Last year I expected the market to rally to $6 or $6.5 however we had no cold in January or February. This year even if we do get a polar vortex I see us topping at 44 to $4.5. We also have the weekly EIA Gas Storage and analyst predictions are all over the board with injection builds of 3 bcf to draws of 25 bcf with 1 analyst expecting a draw as high as 66 bcf. The average is a draw of 7 bcf which compares to the 1 week draw of 32 bcf, the 1- year at 43 bcf and the five-year average of 69 bcf.
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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