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 EIA Energy Stocks at 9:30 A>M. and Dairy Product Sales at 2:00 P.M. The Grain market is trading easier ahead of Fridays Crop Production USDA Supply/Demand report at 11:00 A.M. And China is back buying more U.S. Soybeans on Tuesday after the last round of purchases. The market is also playing wait and see how the next round of negotiations and if the talks can satisfy a long-term deal. State-run buyer Cofco Corp bought almost 1 million metric tonnes of Oilseed and Sinograin purchased more than a million tonnes , the two companies said in separate statements on Tuesday. While the USDA said on Tuesday that China bought 2.603 million tonnes of Soybeans. This is the second confirmed sale since the world’s top buyer of Oilseed announced last week it would buy 5 million tonnes of U.S. supplies during trade negotiations. In the overnight electronic session the March Corn is currently trading at 379 ½ which is 1 ¼ of a cent lower. The trading range has been 380 ¾ to 379 ¼.
On the Ethanol front the March contract is currently trading at which is .008. 2 contracts traded and Open Interest is at 1,532 contracts. The market is currently showing 5 bids @ 1.298 and 1 offer @ 1.309.
On the Crude Oil front last nights API Energy Stocks showed builds in Crude Oil 2.514 MM, Cushing +889 K, Gasoline +1.731 MM and Distillates +1.41 MM. The market seemed to price in the numbers before the event and initially did not selloff dramatically. In the overnight electronic session the March Crude Oil is currently trading at 5351 which is 15 points lower. The trading range has been 5385 to 5286.
On the Natural Gas front we have typical February weather supportive to the market for now. Even with record draws on Gas Storage. In the overnight electronic session the March contract is currently trading at 2.692 which is 3 cents higher. The trading range has been 2.720 to 2.671.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374