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 EIA Energy Stocks at 9:30 A.M., Consumer Credit & Dairy Product Sales at 2:00 P.M. and the beginning of the FOMC meeting starts today with a decision on Interest Rates tomorrow. As investors look ahead to tomorrows Crop Production USDA Supply/Demand data we are hearing whispers that the USDA will drop the U.S. Corn crop. Corn harvest is winding down but the weather forecasted in the coming week will not be beneficial for what is still in the ground. The December Corn settled at 373 ¼ which was ¾ of a cent lower in Tuesday’s open outcry session. In the overnight electronic session the December Corn is currently trading at 372 ½ which is ¾ of a cent lower. The trading range has been 373 ¼ to 371.
On the Ethanol front the December contract s currently trading at 1.290 which is .007 lower in the overnight electronic session. The trading range has been 1.294 to 1.290. 6 contracts traded and open Interest is dropping to 1,838 contracts. The market is currently showing 1 bid @ 1.290 and 2 offers @ 1.292.
On the Crude Oil front last night’s API Energy Stocks was bearish on Crude Oil with builds over 7 million barrels but bullish on Distillates and Gasoline. Winter is coming and Diesel runs trucks and factories which is made from Distillates which we are globally short heading into winter. This is not a good way to start the game. With President Trump granting waivers for this problem to certain counties that cannot find a substitute for their Energy needs. This has Russia and Saudi Arabia meeting next week to cut production as their losses mounted with this big correction and frackers will not be able to get bank loans at these prices because they will produce at a loss. Now that the mid-terms are over we may see a dramatic change in the Energy market psychology. In the overnight electronic session the December Crude Oil is currently trading at 6271 which is 50 points higher. The trading range. Has been 6318 to 6167.
On the Natural Gas front the market is seeking to level out after Monday’s shock weather rally spike and looks it still wants to level out a bit more. In the overnight electronic session the December Natural Gas is currently trading at 3.505 which is 5 cents lower. The trading range has been 3.559 to 3.486.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374