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 kickoff the day with ADP Employment at 7:15 A.M., GDP (Q4’ 18) which talks are it may be delayed> EIA Energy Stocks at 9:30 A.M, FOMC Announcement at 1:00 P.M., FED Chief Jerome Powell speaks at 1:30 P.M. and Dairy Product Sales at 2:00 P.M. The marketplace is hoping the U.S.-China trade talks get off to a good start with U.S. Secretary of the Treasury Steve Mnuchin expects to see an agreement to dropping some or all tariffs. While the two sides try to tackle “complicated issues”. Mnuchin was further quoted, “We want to make sure when we get a deal, that the deal will be enforced, the details of how we do that are very complicated.. That needs to be negotiated. But the IP (intellectual property) protections and no more forced joint ventures, and enforcement are three of the most important issues on the agenda.” On the Grain front the USDA posted on their site the upcoming Export Sales data. As a result of the U.S. Government furlough, The U.S. Export Sales Report has not been published since December 20th 2018 for the week ending December 13th. The below schedule will be implemented to bring reporting up to date.
- The week ending December 20th report to be published January 31st.
- Week ending December 20th to be published February 7th
- The week ending January 3rd which will include the MY changeover figures for hides, skins, wet blues, pork and beef will be published February 14th.
- A combined report for weeks ending January 10,17,24,31,2019 and February 7, 14, 2019 will be published on February 22, 2019.
Further information will be provided in the next several days for the compilation of data for the combined report that will be published February 22, 2019. The regular reporting schedule will resume for the week ending on February 22, 2019.
On the Corn front in the overnight electronic session the March contract is currently trading at 379 ½ which is 2 ¼ cents higher. The trading range has been 380 ¼ to 377 ½.
On the Ethanol front the Ethanol front the March contract posted a trade at 1.286 which is .004 higher. 9 contracts traded and Open Interest is at 1,634 contracts. The market is currently showing 2 bids @ 1.286 and 2 offers @ 1.290.
On the Crude Oil front last nights API Data showed Crude Oil inventories + 2.098 million barrels, Gasoline + 2.15M, Distillates + 211 thousand barrels and Cushing minus 682 thousand barrels. In the overnight electronic session the March Crude Oil is currently trading at 5388 which is 57 points higher. The trading range has been 5400 to 5309.
On the Natural Gas front the polar vortex is expected to lift this weekend with current wind chills in the Chicago area are anywhere from 50 to 60 below zero while highs are expected to reach 45 degrees above on Sunday. We are talking about an 100 degree swing in a short time so we will be ready for the beach. This will keep the bulls at bay. In the overnight electronic session the March contract is currently trading at 2.868 which is 3 ½ cents lower. The trading range has been 2.919 to 2.852.
Have a Great Trading Day!