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
Heading into the G20 summit in Buenos Aires Argentina President Trump is not about to keep his powder dry as he meets with President Xi Jinping in a high-stakes summit and the outcome will have a lasting effect and enormous effect to the Stock Market and the Commodities Markets as well as Sino-Us relations for decades to come. President Trump warned he expects to move ahead with boosting $200 billion in tariffs to Chinese goods to 25%, and also said it is “highly unlikely” that he would accept Beijing’s request to hold off on the increase. Mr. Trump also said if negotiations do not work out, he would put additional tariffs on the rest of Chinese imports that are currently not subject to duties. After Thanksgiving, It is time to talk turkey. That news shook the Grain complex in yesterday’s action, especially with Soybeans and the selloff spilled over into the Corn and Wheat market as well. As I traveled this holiday through northeast Illinois and southeast Wisconsin I saw the fields and yesterday’s Crop Progress report confirmed my suspicions which showed 700 million bushels of Corn and 200 million bushels of Soybeans are still in the U.S. fields. In the overnight electronic session the December Corn is currently trading at 356 which is unchanged. The trading range has been 358 ½ to 355 ½.
On the Ethanol front the market is in sensitive mode as volatility is the game as the market ponders talks of boosting production by reducing subsidies, Brazil trying to make a comeback as an Ethanol leader once again with their sugarcane based product and potential huge Export market and with a major wildcard in the Chinese market as talks continue. In the overnight electronic session the December Ethanol is currently trading at 1.246 which is .008 lower. The trading range has been 1.258 to 1.246 with 104 contracts traded and Open Interest further declining to 616 contracts. The market is currently showing 1 bid @ 1.244 and 1 offer @ 1.250.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374