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
Slow day in the Grain complex as we do not expect any new happenings before Friday’s Crop Production, Grain Stocks, USDA Supply/Demand and Winter Wheat Seedings. A Thomson Reuters poll of analyst Corn end-stocks predict the USDA number will come in averaging 2.431 billion bushels with high estimate of 2.550 bb and the low 2.263 bb The December USDA came in at 2.550 bb. Analysts own estimates averaging Corn end-stocks average of 2.407 bb with the high at 2.550 bb and the low 2.295 bb. In the overnight electronic session the March Corn is currently trading at 248 ¼ which is 1 cent higher. The trading range has been 348 ½ to 347 ¼.
On the Ethanol front the February contract is currently trading at 1.324 which is /019 higher in the overnight session. The trading range has been 1.328 to 1.323 with estimated volume at 17 contracts and Open Interest at 1,549 contracts. The market is currently showing 1 bid@ 1.315 and 1 offer @ 1.322.
On the Crude Oil front we were very active in the overnight electronic session. We have the weekly API number today and whispers continue to talk further draws. Ideally in today’s trading session we would like to see a close above $62 a barrel. The February contract is currently trading at 6207 which is 34 points higher. The trading range has been 6256 to 6180. I do anticipate further draws and the possibility of sanctions on Iran could further stir the geo-political pot.
On the Natural Gas front the market is trading higher with the February contract currently trading at 2.900 which is 6 ½ cents higher in the overnight electronic session. The trading range has been 2.924 to 2.828. I been burned before and really want to back pedal when recommending to buy with weather forecasts continually changing and producers happy to let loose on product above $3.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374
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