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 kickoff Washington’s Birthday with Jobless Claims at 7:30 A.M., EIA Gas Storage at 9:30 A.M., EIA Energy Stocks at 10:00 A.M., Cold Storage Annual Report and Dairy Product Sales at 2:00 P.M. Yesterday’s FED minutes further sparked a charge in the Stock Market only to be debunked after the 5-year T-Note auction with yields coming in at almost a two-year high. This is still good news to a robust and flourishing economy that is healthy but investors fearing inflation and Rate hikes keep the volatility rolling. And we have a lot of earnings today with such giants as Hormel Foods Corp. before the bell and Hewlett-Packard (HP Inc.) after the bell.
On the Corn front weather remains the constant as investors monitor the weather in Argentina and Brazil that are challenged heading into their harvest. Here in the U.S. we have weather concerns as well and pile on exports and talk of lower Corn plantings and larger Soybean plantings this complex will be volatile as well. But as we know from the past, “It is not what you plant but what you grow”. In the overnight electronic session the March Corn is currently trading at 365 ¾ which is unchanged. The trading range has been 366 ¼ to 364 ¾.
On the Ethanol front the April contract posted a trade at 1.497 which is .008 of a cent higher. The market is showing an Estimated Volume of 7 contracts and the Open Interest is surging past the March contract that is closing in on expiration. The April contract is currently showing 1 bid @ 1.479 and 2 offers @ 1.492.
On the Crude Oil front last night’s API data showed a draw of 907 thousand barrels when expectations were counting on a build 2.9 million barrels. Cushing, Oklahoma showed expected draws of 2.644 million barrels while Gasoline showed builds of 1.644 and the Distillates had a significant draw of 3.563 million barrels which is not a good sign for Diesel prices. The Energies did not rally much after the T-Note auction sank the Stock Market with higher yields scaring investors to the exit once again. In the overnight electronic session the April Crude Oil is currently trading at 6158 which is 10 tics lower. The trading range has been 6161 to 6075. Remember the EIA Energy Stocks data will be released at 10:00 A.M.
On the Natural Gas front the EIA we have the EIA Gas Storage at 9:30 A.M. We expect a draw of 120 bcf. The market cannot gather any legs with the cold weather snap and as we head closer into shoulder season we could see even cheaper prices. In the overnight electronic session the March Natural Gas is currently trading at 2.649 which is 1 cent lower. The trading range has been 2.658 to 2.624.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374
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