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 the day with the Producer Price Index (PPI) and Wholesale Trade at 7:30 A.M. and later we have the delayed American Petroleum Institute (API) Energy Stocks at 3:30 P.M. Ahead of tomorrow’s Crop Production USDA Supply/Demand, yesterday we had the USDA Crop Progress report which showed U.S. Corn harvest at 35% complete. The poll also showed slight declines of good-to-excellent from last week. The poll also showed Winter Wheat planted at 56% versus last week’s number pegged at 43% planted. In the overnight electronic session the December Corn is currently trading at 364 ¼ which is a ¼ of a cent lower. The trading range has been 365 ¼ to 364. Harvest has been slowed by wet weather.
On the Ethanol front the big news is that President Trump lifting the Federal ban on summer sales of higher Ethanol blends. The refining industry is not happy arguing they should have gotten more than trade restrictions in exchange for lifting the summer ban. In the overnight electronic session the November contact posted a trade at 1.317 which is .001 lower. 2 contracts traded and the market is currently showing 1 bid @ 1.314 and 2 offers @ 1.317 with Open Interest at 1,559 contracts.
On the Crude Oil front we are consolidating around the $75 level. Investors will be weighing the devastation of Hurricane Michael with demand destruction on one hand and shortages due to disruptions in shipping and offshore oil rigs. We also have the API Energy Stocks at 3:30 P.M. and I am not looking for a build after last week’s data release. In the overnight electronic session the November Crude Oil is currently trading at 7460 which is 36 points lower. The trading range has been 7508 to 7448.
On the Natural Gas front the market has been rolling with old product moving out of storage and producers are ready to tap to fill up more supply. Hot weather and Hurricane Michael have the market higher again as rigs and refineries will need generators working to keep flood damage to a minimum. In the overnight electronic session the November contract is currently trading at 3.346 which is 8 cents higher. The trading range has been 3.358 to 3.299.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374