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 this crisp October Friday with Export Sales at 7:30 A.M. and we have a recovering Stock Market. On the Corn front after 80 degree weather a couple of days ago we are now experiencing night-time wind chills of 32 degrees or lower creating frost scares. The USDA lowered Corn yields and kept Corn carry out in check. Corn Export Sales came in the lower part of the range of expectations but continues to be supportive to prices. In the overnight electronic session the December Corn is currently trading at 369 ¼ which is sharply unchanged. The trading range has been 371 to 368 ½.
On the Ethanol front we have had revisions of the Renewable Fuel Standard (RFS) and investors are banking on a strong export market of U.S. Ethanol. In the overnight electronic session the November Ethanol is currently trading at 1.315 which is .010 higher. The trading range has been 1.315 to 1.309 with 2 contracts traded. The market is currently showing 2 bids @ 1.306 and 2 offers @ 1.323 with Open Interest at 1,523 contracts.
On the Crude Oil front as we are less than three weeks away from Iranian sanctions to take hold and the Trump administration holding firm with other countries that if they do business with Iran, all bets are off of doing business with the U.S. This coupled with strong demand and tight supplies and emerging markets consuming Energy at a record clip is the perfect recipe for higher prices in the witches brew. In the overnight electronic session the November Crude Oil is currently trading at 7169 which is 72 points higher. The trading range has been 7201 to 7094.
On the Natural Gas front yesterday’s EIA Gas Storage came in line with expectations. The market sold-off the highs prior to the report. Wacky weather across the lower 48 with above average temperatures across the Plains and Midwest to below average temperatures should change demand outlook. In the overnight electronic session the November Natural Gas is currently trading at 3.222 which is unchanged. The trading range has been 3.270 to 3.195.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374