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
We start off the day with six more weeks of winter according to that darn rodent but he is probably more accurate than the European or U.S. weather module. And the first Friday of the month we have the dreaded Unemployment data at 7:30 A.M. and with the way the economy is booming it won’t be as dreaded as it was in the recent past. We also have Factory Orders at 9:00 A.M. On the Corn front and the Grains at a whole the complex just seems it cannot sustain prosperity. Export Sales offered a helping hand and global demand for feed and a weaker U.S. dollar should be at the forefront to move product and carryover which should be a bullish sign. In the overnight electronic session the ?March Corn is currently trading at 361 ¾ which is unchanged. The trading range has been 361 ¾ to 360 ½
On the Ethanol front EPA chief Scott Pruitt is concerned about the Renewable Identification Number (RIN) which is more government to the Renewable Fuel Standard (RFS) which was a cause of a recent bankruptcy to a Pennsylvania refinery which according to Pruitt is evidence the biofuel policy needs a major overhaul which putts biofuel advocates at odds with him. In the overnight electronic session the March ethanol is currently trading at 1.447 which is .013 higher. The trading range has been 1.460 to 1.433. The market is currently showing 2 bids @ 1.444 and 1 offer @ 1.447 with 52 contracts traded and Open Interest at 1,589.
On the Crude Oil front the market is posturing a move to the high side as we head into shoulder season which usually creates a slide before the summer driving season but this is not your average year.
With a good economy and businesses flourishing they will be hiring more people and will be moving supplies of durable goods and they must keep the trucks moving which is a good economic indicator of positives ahead. In the overnight electronic session the March Crude Oil is currently trading at 6580 which is unchanged. The trading range has been 6630 to 6559.
On the Natural Gas front, “How low can you go” before a buying opportunity represents itself. Plenty of product but no revenue in sight for profits has choked this market as Mother Nature has not cooperated to keep a demand driven market. As we move closer to spring the market will need another fundamental reason to rally. My only reason to see a rally is what is the cure for low prices? Low prices. What is the cure for high prices? High prices. When a market seeks a low it will eventually seek a high and eventually will seek it’s own level of fair value. In the overnight electronic session the March Natural Gas is currently trading 2.871 which is 1 ½ of a cent higher. The trading range has been 292 to 285.
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. ©2018
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