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
With Tariff’s, Interest Rates and Consumer Confidence the major headlines it is great to see the current administration bringing representatives of rival Corn & Oil industries to the table and negotiate a fair and practical solution to their differences where every party will benefit from revenues with the policy of E-15 which is 15% of Ethanol blended in Gasoline. The White House is seeking a solution and is open to points and views of all parties concerned. On the Corn front yesterday’s exports were healthy and welcome. Weather in South America has Brazil trying to fill the gap of the Argentine crop which has brought dramatic shortages in their crop. In the overnight electronic session the May Corn is currently trading at 387 which is ¾ of a cent higher. The trading range has been 388 to 385 ¼.
On the Ethanol front the April contract is currently trading at 1.500 which is .007 of a cent higher. The trading range has been 1.512 to 1.500. The market is currently showing 1 bid @ 1.500 and 1 offer @ 1.503 with 34 contracts traded and climbing Open Interest to 1,115. It is great to see both opposite parties (Corn & Oil industries) at the bargaining table.
On the Crude Oil front we should see bottom feeders looking to buy value as global demand continues to rise and supplies are thinner and thinner. Last year we were concerned about storage capacity and what and where were going to store all of this Oil in this glut. What a difference a day makes and worries about storage capacity are a thing in the past and investors will get an education when Gasoline prices rise and we are paying more at the pump. In the overnight electronic session the April Crude Oil is currently trading at 6084 which is 15 points lower. The trading range has been 6141 to 6053.
On the Natural Gas front the nor’easter that is hammering the East Coast could become a “Bomb Cyclone” according to several reports. Although this storm is a monster, it could be Old Man Winters last song and dance. Depending on the severity of this storm we should see an easing in Natural Gas prices. In the overnight electronic session the April contract is currently trading at 2.718 which is 2 cents higher. The trading range has been 2.728 to 2.2,686. This weekend’s weather smack could see longs liquidating as we move into shoulder season.
Have a Great Trading Day!
Thanks, Daniel Flynn
Questions? Ask Dan Flynn today at 312-264-4374
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