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 American Petroleum Institute (API) showed Crude Oil draws of 11.19 million barrels and Cushing, Oklahoma down 2.516 million. Although the products had builds with Gasoline up 4.338 million barrels and Distillates up 4.685 million barrels has the market rolling this morning. Even with builds in products investors sense shortages in the future which should send Diesel prices through the roof. A very unwelcome sign to farmers as we gradually move closer to plantings. We should also see a pop in Ethanol and Propane prices. We can’t forget the geo-political front with Iran, Saudi Arabia, Syria and Yemen. This morning we have Wholesale Trade at 7:30 A.M., EIA Energy Stocks at 9:30 A.M. and Dairy Product Sales at 2:00 P.M.
On the Corn front the market remains quiet ahead of Fridays Crop Production, Grain Stocks and USDA Supply/Demand. In the overnight electronic session the March Corn is currently trading at 349 ¼ which is ¼ of a cent higher. The trading range has been 349 ¾ to 348 ½.
On the Ethanol front the market is surprisingly quiet like the Corn. In the overnight electronic session the February contract is currently trading at 1.325 which is .001 of a cent lower. The trading range has been 1.327 to 1.325 with contracts traded and Open Interest at 1,450 contracts. The market is currently showing 2 bids @ 1.325 and 2 offers @ 1.330.
On the Crude Oil front this morning’s EIA Energy Stocks could be less bullish and offer a pullback but at the moment the market is rolling like a juggernaut. In the overnight electronic session the February contract is currently trading at 6359 which is 63 points higher. The trading range has been 6367 to 6333.
On the Natural Gas front the market continues to teeter-totter due to changing weather forecasts and cold weather back on the horizon starting Friday after the brief warmup. Producers will sell product above $3 and the market just melts. In the overnight electronic session the February contract trading at 2.943 which is 2 cents higher. The trading range has been 2.899 to 2.927.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374
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