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
While US – Sino trade relations are at a breaking point with progress with more purchases of Soybeans coming to a theatre near you soon, and many other U.S. commodities on the horizon to be purchased. Now the Brexit news is back, like we even care with the headlines a year ago are just termed old news. And the chaos in France as not paying for free stuff that the minions grew to expect entitlements and the taxation move has put President Emmanuel Macron on the defensive. The Stock Market was seemed to follow suit with the Asian and European when a reversal of fortunes as less fear on tech stocks brought the NASDAQ and Dow Jones sharply higher on the day in a big way with a much better feeling on the overall U.S. economy. The Grains overall did not jump on the exciting news that seemed to be confirming the story out of the G20 in Argentina after U.S. President Donald Trump and his counterpart Chinese President Xi Jinping pledge to resolve the trade tensions that have disrupted the global commodity flows.
On the Corn front we settled 1 ½ cent lower in yesterday’s Open Outcry session. The Grain complex has traders still trading relatively quiet with this good news in the market. There are still fears of the CEO of the Chinese technology giant detention may put a screw in negotiations but I see otherwise at the moment. In the overnight electronic session the March Corn is currently trading at 383 ¾ which is a ¼ of a cent lower. The trading range has been 384 ¾ to 382 ¾.
On the Ethanol front the January contract is currently trading at 1.222 which is .001 higher. The trading range has been 1.228 to 1.222 with 21 contracts traded and Open Interest at 1,913 contracts. The market is currently showing 1 bid @ 1.220 and 1 offer @ 1.224.
On the Crude Oil front, Where are the draws? Record U.S. exports and with record Chinese imports and OPEC and non-OPEC production cuts. The only thing the bulls need to fear is fear of the algorithm traders jumping on the markets in the wee hours of the morning on no news. In the overnight electronic session the January Crude Oil is currently trading at 5168 which is 68 points higher. The trading range has been 5174 to 5070.
On the Natural Gas front the market is sliding lower this morning after closing 5.7 cents higher in yesterday’s action. Even with cold weather and the record snow on the eastern seaboard and south the market is still substantially lower telling me supplies are of no concern versus 5 years ago at this time. In the overnight electronic session the January contract is currently trading at 4.475 which is 7 cents lower. The trading range has been 4.587 to 4.430.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374