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 global markets are burping on our hiccup correction as we knew it was coming starting with it was eventual a bull market must retreat from the gains of a major rally and a more hawkish view on Interest Rates, which is a sign the economy is on the move in a great way. It just can’t continue to roll like a juggernaut without any resistance and this market corrected on good news not bad news… Another factor with months of the VIX shaking off all of the volatility and finally are seeing the signs we could be volatile from here on out which is not necessarily a bad thing. Another thing to think about is all the algorithm traders losing money trading and writing VIX options to do window dressing but with Friday’s and yesterday’s action the VIX woke up creating a panic. This morning we have the U.S. Trade Balance and at 3:30 P.M. we have the API Energy Stocks. On Thursday we will have world crop end-stocks, South America crop report and U.S. grain end-stocks. On the Corn front the March Corn is currently trading at 358 which is ¾ of a cent lower. The trading range has been 358 ¾ to 356 ¼. The market may be quiet heading into Thursday Export Sales, Crop Production USDA Supply/Demand.
On the Ethanol front there were no trades posted in the overnight electronic session. The March contract settled at 1.431, and is currently showing 1 bid @ 1.431 and 1 offer @ 1.435 with Open Interest at 1,213 contracts and the April on its heels with 503 contracts Open with an early Easter which is usually the start of the summer driving season.
On the Crude Oil front the whisper numbers are calling for builds on Crude Oil and draws on Products. In the overnight electronic session the March Crude Oil is currently trading at 6330 which is 85 points higher. The trading range has been 6398 to 6312.
On the Natural Gas front the market remains in selloff mode regardless of the weather. In the overnight electronic session the March contract is currently trading at 2.717 which is 3 cents lower. The trading range has been 2.785 to 2.712. We will need another record draw on Thursdays EIA Gas Storage for this market to take notice.
Let’s Have a Turnaround Tuesday!
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374
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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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