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
Today we have 3rd quarter GDP at 7:30 A.M., New Home Sales at 9:00 A.M., EIA Energy Stocks at 9:30 A.M. and Dairy Product Sales at 2:00 P.M. Today is Last Trading Day for December Natural Gas. In the Corn & Ethanol news the U.S. Environmental Protection Agency (EPA) has rejected a request from the Corn lobby to reallocate biofuel volumes waived under the small refinery exemption program into its 2019 mandate. The Corn lobby and U.S. Department of Agriculture, have been jockeying for months that an expansion of the EPA’s refinery waiver program under the Trump administration threatens demand for crucial farm products like Corn-based Ethanol. Under the U.S. Renewable Fuel Standard (RFS) oil refiners must blend increasing amounts of biofuels in their fuel each year or purchase blending credits from those that do. But small refineries can be exempted from the RFS if they prove that complying would cause them financial strain. The 2019 biofuel mandate figures were set to be largely in line with the agency’s June proposal of 19.88 billion gallons. This was reported by Humeyra Pamuk with Thomson Reuters.
On the Corn front the December contract is currently trading at 358 ½ which is 2 cents higher in the overnight electronic session. The trading range has been 358 ¾ to 356. Still more harvesting to go weather permitting.
On the Ethanol front the December contract is nearing expiration having traded 18 contracts in the overnight electronic session at 1.220 with Open Interest dropping to 440 contracts. The market is currently showing 1 bid @ 1.218 and 1 offer @ 1.219.
On the Crude Oil front last night’s API showed a build of 3.453 million barrels, Gasoline stocks had a draw of 2.620 million barrels, Distillates showed a needed build of 1,185 million barrels and Cushing showed a build of 1.302 million barrels. In the overnight electronic session the January Crude Oil is currently trading at 5121 which is 35 points lower. The trading range has been 5256 to 5088.
On the Natural Gas front the December contract expires today and with January like temperatures the January contract is currently trading at 4.427 which is 13 ½ cents higher. The trading range has been 4.536 to 4.209.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374