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 March coming in as a Lion with a Full Moon and reports abound starting with Export Sales, Jobless Claims and Personal Income at 7:30 A.M., Construction Spending and ISM Manufacturing Index at 9:00 A.M., EIA Gas Storage at 9:30 A.M. and at 2:00 P.M. Cotton System, Dairy Products, Fats & Oils and Grain Crushings. On the Corn front we will be watching the Export Sales which we are anticipating a good number and with more no good news on the Argentine crop and troubles continue to mount that is making are crop more attractive purchase at our price levels. Also Funds taking month end profits supported prices in yesterday’s action. In the overnight electronic session the May Corn is currently trading at 381 ¼ which is ¾ of a cent lower. The trading range has been 382 ½ to
379 ½. On the Ethanol front the April contract posted a trade at 1.492 which is .002 higher. The market is currently showing 2 bids @ 1.486 and 2 offers @ 1.492 with 2 contracts traded and Open Interest at 1,086.
On the Crude Oil front the testimony from Fed Chair Jerome Powell sees a little chance of a recession but investors feared a rate hike and the Stock Market nosed dived spilling over to the Crude Oil market and again the funds played a hand in this break as well. In the overnight electronic session the April Crude Oil is currently trading at 6130 which is 34 points lower. The trading range has been 6183 to 6094.
On the Natural Gas front we need a substantial draw in the EIA Gas Storage for this market to get any legs under it. The weekly Thomson Reuters poll with 25 analyst participating estimate draws anywhere from 60 to 98 bcf with the median of a draw of 77 bcf. This compares to the one-year decline of 57 bcf and the five-year average of draws of 129 bcf. In the overnight electronic session the April contract is currently trading at 2.672 which is a ½ of a cent higher. The trading range has been 2.681 to 2.642.
Have a Great Trading Day!
Thanks, Daniel Flynn
Questions? Ask Dan Flynn today at 312-264-4374
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