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
Busy day starting with Producer Price Index (PPI) at 7:30 A.M. followed by the last Crop Production USDA Supply/Demand report of 2017 at 11:00 A.M., API Energy Stocks at 3:30 P.M and the FOMC meeting today and tomorrow in which investors see the writing on the wall and are gearing for a rate hike. On the Corn front the March Corn broke to a new record low as NAFTA concerns and supplies ideas continue to pressure the market. The U.S. dollar has strengthened with a Hawkish Fed expected to raise interest rates, while the Brazilian Real has weekend which could help their exports. In the overnight electronic session the March Corn is currently trading at 349 ¾ which is ¾ of a cent higher. The trading range has been 349 ¾ to 349.
On the Ethanol front the January contract is currently trading at 1/295 which is .021 cents lower. The trading range has been 1.305 to 1.280. The market has an estimated 15 contracts traded with Open Interest at 1,277 contracts. The market is currently showing 2 bids @ 1.298 and 2 offers @ 1.304.
On the Crude Oil front the market is flying high this morning with January contract currently trading at 5848 which is 49 tics higher in the overnight electronic session. The trading range has been 5856 to 5790. Investors are wondering that last week’s data may have been skewed with the large NAFTA delivery to China. In any event, traders are expecting an adjustment on tonight’s data and expect the winds behind our sales as we see the economy heating up and we do not want to have it overheated after a decade of 0 growth.
On the Natural Gas front if we do not get a dose of extreme cold weather we can expect the pipelines to continue to flow with product which is not a good thing for our producers. In the overnight electronic session the January contract is currently trading at 2.820 which is .008 of a cent lower. The trading range has been 2.844 to 2.798.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374
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Past results are not necessarily indicative of future results. Investing in futures can involve substantial risk of loss & is not suitable for everyone. Trading foreign exchange also involves a high degree of risk. The leverage created by trading on margin can work against you as well as for you, and losses can exceed your entire investment. Before opening an account and trading, you should seek advice from your advisors as appropriate to ensure that you understand the risks and can withstand the losses.
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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