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
Marcelo Teixeira with Thomson Reuter’s reports that on Tuesday, FS Bioenergia announced a joint venture between Brazilian and U.S. based investors to build its second Corn-based Ethanol plant in Brazil’s top grain-producing state of Marto Grasso. FS Bioenergia, first venture to build a 100% Corn based Ethanol plant in Brazil. With Corn prices as low as they are and Ethanol demand growing in the country, this will attract investors and looks like the perfect marriage. Today we have Existing Home Sales at 9:00 A.M., Milk Production at 2:00 P.M. and the API Energy Stocks at 3:30 P.M. The FED will also release the minutes of the last meeting today. In the overnight electronic session the March Corn is currently trading at 367 ¼ which is 1 ¾ of a cent higher. The trading range has been 357 ½ to 364 ¼. New bullish stories such as demand need to be constantly fed into this market as feed prices look attractive and the bottom line of revenue has Corn looking better and better.
On the Ethanol front rollovers continue. Even though the March contract has traded 11 contracts versus the April’s 1 contract the March Open Interest is declining rapidly with 544 contracts open versus the April’s 857 and climbing. In the overnight electronic session the March contract is currently trading at 1.488 which is .013 higher. The trading range has been 1.488 to 1.477.
On the Crude Oil front we are trading lower in the overnight electronic session. With a choppy Stock Market, the U.S. dollar attempting to find a bottom and investor fears of a U.S. Interest Rate hike has the market trading on volatility we have not seen for some time and has investors lightening up on risk and banking profits. Today we have the API Energy Stocks at 3:30 P.> and I am seeing a bullish number in production, supply and capacity. Two years ago we were worried about not having enough capacity to store supply and now we are worried where the supply went to. What a difference a day makes. In the overnight electronic session the April Crude Oil is currently trading at 6146 which is 33 points lower. The trading range has been 6170 to 6092.
On the Natural Gas front the market is trying to grab some legs and attempt a shot at $3. However close it gets this will be “The Last Hurrah”, heading into shoulder season. In the overnight electronic session the March contract is currently trading at 2.641 which is 2 ½ cents higher. The trading range has been 2.649 to 2.565.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374
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