About The Author

Daniel Flynn

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 east coast girls are bundled and the west coast girls are bundled, Sorry I meant bundled up and fumbled the Beach Boys hit but weather like this you think of Summer Breeze and A Summer Wind. The east coast is taking it on the chin again as after Old Man Winter punched them in the nose he is now hitting them with a haymaker with hurricane force winds creating loads of snow and ice after the initial arctic blast. And this should effect the markets today and beyond. This morning we kickoff the day with Initial Jobless Claims at 7:30 A.M., EIA Gas Storage at 9:30 A.M., EIA Gas Storage at 9:30 A.M.,EIA Energy Stocks at 10:00 A.M., Dairy Products and Dairy Product Sales at 2:00 P.M.

On the Corn front news reported by Tom Polansek of Thomson Reuters that four years of a bumper grain and oil seed harvest has squeezed profits for Cargill and main rivals Archer Daniels Midland Co ADM.N, Bunge Ltd BG.N and Louis Dreyfus Corp LOUDR.UL. Traders expect more of the same next year, prompting cost cuts. I anticipate challenges in this year’s crop but at the moment I am unique. In the overnight electronic session the March Corn is currently trading at 352 ½ which is a ½ of a cent lower. The trading range has been 353 ½ to 352 ¼.

On the Ethanol front the January contract expires today and the February contract is currently trading at 1.349 which is .003 higher. The trading range has been 1.393 to 1.345. 59 contracts traded and Open Interest is at 1,606 contracts. The market is currently showing. The market is hearing whispers that the cold weather is going to put refineries at a further disadvantage to produce corn and sugar based Ethanol in the mix.

On the Crude Oil front last night’s API data showed draws in Crude Oil at 4.992 million barrels, Cushing down 2.11 million while Gasoline and Distillates showed builds of 1.87 million barrels and 4.272 million barrels respectively. The east coast should welcome a big build in Distillates for Home Heating Oil and hopefully we pray there will not be any further disruptions in deliveries. In the overnight electronic session the February Crude Oil is currently trading at 6180 which is 17 points higher. The trading range has been 6221 to 6169. The EIA report will be released at 10:00 A.M.

On the Natural Gas front the weekly EIA Gas Storage will be released at 9:30 A.M. And the weekly Thomson Reuters poll with 24 analysts participating expect huge draws anywhere from 205 bcf to 243 bcf with the median at 221 bcf. This compares to last week’s draw of 112 bcf, the one year of 76 bcf and the five-year average of 99 bcf. This will be the biggest withdrawal for the week on record, according to the federal agency data going back to 1994, due to increased heating demand during the brutally cold week.  In the overnight electronic session the February Natural Gas is currently trading at 3.028 which is 2 cents higher. The trading range has been 3.078 to 2.981. Coal Plants in West Virginia will be slowed down as well in the inclement weather.

Have a Great Trading Day!
Dan Flynn

 

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. ©2018

Questions? Ask Dan Flynn today at 312-264-4374         A Subsidiary of Price Holdings, Inc. – a Diversified Financial Services Firm. Member NIBA, NFA 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. ©2018