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 Employment Cost Index, Export Sales, Jobless Claims and Personal Income at 7:30 A.M., Chicago PMI at 9:00 A.M., EIA Gas Storage at 9:30 A.M. The USDA is attempting to catch up on Export Sales as America was held hostage by the silly government shutdown back in December. While the USDA is making an approach to get current, there are no signs the opposition will start another government shutdown which of course signals their desire to stop or slow forward progress. It is a shame these opponents can’t get a real education and work on a farm for one week. Just one week. The Grains are playing the waiting game as the U.S.-China trade talks continue with both sides and the entire free trade world desire an agreement. You can play any headline you want but this agreement will be a marriage and not a compromise. We both expect success before the March 1st deadline where more tariffs could be imposed. Right now let’s keep the olive branches flowing and get down to the basics of fair trade. On the Corn front in the overnight electronic session the March Corn is currently trading at 380 ½ which is ¾ of a cent lower. The trading range has been 381 ½ to 380 ¼.
On the Ethanol front the March Contract is currently trading at 1.285 which is .003 lower. The trading range has been 1.290 to 1.279. 34 contracts passed hands and Open Interest is climbing to 1,764 contracts. The market is currently showing 2 bids @ 1.287 and 2 offers @ 1.291.
On the Natural Gas front we have the weekly EIA Gas Storage number today, the Thomson Reuters weekly poll showed analysts expecting withdrawals anywhere from 207 bcf to 165 bcf. This compares to the one-year draw of 126 bcf and the five – year average of 150 bcf. In the overnight electronic session the March Natural Gas is currently trading at 2.864 which is 1 cent higher. The trading range has been 2.918 to 2.842.
Have a Great Trading Day!