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
This morning with start off the day with 4th Quarter GDP at 7:30 A.M., Chicago PMI at 9:00 A.M., EIA Energy Stocks at 9:30 A.M. and Dairy Product Sales at 2:00 P.M.
Ethan Warrick Editor with Wealth authority, wrote a story that China the Asian Superpower has emerged as one of the top trading partners in U.S. agricultural sector. According to the U.S. Department of Agriculture, China represents the top Soybean importer and buys more than half of all Soybeans grown by Americans. The figure for 2016 was a whopping 14.2 billion, with American course Grain hitting 1 1 billion. Paul Burke with the U.S. Soybean Export Council reportedly mentioned, “If there are increased trade tensions, Soybeans could likely be a potential target in any Chinese retaliation.” Tariffs aside this would be the wrong year to switch their business to South America with the Argentine drought. Today is First Notice Day on March Grains so we rollover to the May contract which is currently trading at 380 which is ¾ of a cent higher. The trading range has been 380 ¼ to 378 ¼. The meeting with President Trump and senators representing both Oil and Corn industries failed to reach an agreement on biofuels policy to refiners. The good news is that both sides are talking. On the Ethanol front the April contract is currently trading at 1.488 which is .002 lower. The trading range has been 1.490 to 1.486. The market is currently showing 1 bid @ 1.486 and 1 offer @ 1.479 with 5 contracts changing hands and Open Interest at 1,042 contracts.
On the Crude Oil front last night’s API Energy Stocks showed builds in Crude Stocks at 933 thousand barrels, Gasoline Stocks up 1.914 million barrels, while Distillates showed draws of 1.437 million barrels and Cushing, Oklahoma showed further draws of 1.277 million barrels. The report was overall bullish but with Jerome Powell the new FED Chief testifying to Congress said the economy is in good shape with Consumer Confidence leading the way scared investors that there will be more Interest Rate hikes which sold the Stock Market off and spilled over into the Energy complex. Europe’s cold winter had a lot to do with sagging Distillate inventories which is not happy news for farmers. The Energy Information Administration (EIA) will release its data this morning which should confirm tight supplies and increasing demand whatever the International Energy Agency (IEA) spews out. In the overnight electronic session the April Crude Oil is currently trading at 6300 which is 1 tic lower. The trading range has been 6310 to 6253.
On the Natural gas front the market is attempting to spark one more push to get above the $3 level but currently does not look to be in the cards with current fundamentals In the overnight electronic session the April contract is currently trading at 2.693 which is 1 cent higher. The trading range has been 2.698 to 2.659.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374
A Subsidiary of Price Holdings, Inc. – a Diversified Financial Services Firm. Member NIBA, NFA
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
SubscribeReceive daily summaries of all Market Insights blog posts.
Enter email below.
Most Recent Posts
- Morning Grains Report 03/22/18
- Morning Softs Report 03/22/2018
- Tariffs Latest Market Jitters. The Corn & Ethanol Report 03/22/18
- Fed Raises Rates, Cattle on Feed. The Nemenoff Report 03/22/18
- Below Average. The Energy Report 03/22/18
- AGMASTER 03/21/18
- Morning Grains Report 03/21/18
- Morning Softs Report 03/21/2018