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 the day with Producer Price Index and Wholesale Trade at 7:30 A.M. In yesterday’s Crop Production USDA Supply/Demand the world ending stocks were revised to the chagrin of many investors because of the short notice that China revised their calculations dating back ten years. These numbers were not music to investors ears what so ever given the short time to digest the data given by the China National Grains and Oils Information Center (CNGOIC)> In the overnight electronic session the December Corn is currently trading at 370 ½ which is 3 cents lower. The trading range has been 374 to 370 ½.
On the Ethanol front the December contract posted a trade at 1.263 which is .006 lower. 2 contracts traded and Open Interest is dropping to 1,760 contracts and the market is currently showing 3 bids @ 1.248 and 2 offers @ 1.259.
On the Crude Oil front it still looks like a bottomless pit. Unless you think we are in a global recession this market is grossly oversold and I anticipate a bottom shortly especially with OPEC meeting to cut production. In the overnight electronic session the December Crude Oil is currently trading at 5973 which is 94 points lower. The trading range has been 6079 to 5928.
On the Natural Gas front the market spiked as old man winter casts his shadow. In the overnight electronic session the December contract is currently trading at 3.658 which is 11 ½ cents higher. The trading range has been 3.681 to 3.552.
Have a Great Trading Day!