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 Export Sales, Jobless Claims and Personal Income at 9:30 A.M. All eyes are focusing on the pivotal G20 meeting and OPEC meeting. Sino- U.S. relations hang in the balance for trade for some time to come and production cuts on Crude Oil will attempt to put the market back in balance. These two assemblies will be a rendezvous with destiny. We will either have a rolling global economy or the pitfalls of trade barriers. On the Corn front, like the rest of the Grain complex, is waiting to hear the verdict of a raging bull market or a slippery slope of a bear market with exports to diminish if no deal is reached. In the overnight electronic session the December Corn is currently trading at 359 ¾ which is ¾ of a cent lower. The trading range has been 362 to 359.
On the Ethanol front the January contract is currently trading at 1.236 which is .001 lower. The trading range has been 1.236 to 1.232. 13 contracts traded and Open Interest is at 1,698. The market is currently showing 1 bid @ 1.233 and 5 offers @ 1.236.
On the Crude Oil front the market is trading on the latest headlines of a projected production cut. And the last headline has Russia on board to follow suit which gave the market a needed shot in the arm as the market was trading below $50 a barrel in the overnight electronic session. The January contract is currently trading at 5113 which is 84 points higher. The trading range has been 5148 to 4941.
On the Natural Gas front the market is giving back premium it has gained as warmer temperatures are predicted in the five-day weather forecast. We also have the EIA Gas Storage at 9:30 this morning. The Thomson Reuters weekly poll with 21 analysts participating expect withdrawals ranging from 105 bcf to 62 bcf with the median draw of 75 bcf. This compares to the one-year withdrawal of 3 bcf and the five-year average decrease of 58 bcf. In the overnight electronic session the January Natural Gas is currently trading at 4.559 which is 14 cents lower. The trading range has been 4.674 to 4.498.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374