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
The question is can Congress push through the deal and get it to the President before Friday to avert another government shutdown. The President will act on the shortfall for the border wall and we will keep the government open. We also are hoping the U.S.-China talks resume with both sides intent on reaching a long-term agreement. We start off the day with Consumer Price Index and Real Earnings at 7:30 A.M. followed by EIA Energy stocks at 9:30 A.M. and Dairy Product Sales at 2:00 P.M. On the Grain front were now trading in the reds towards the lows , the complex was unable to hold the green highs in the overnight electronic session. The market is weighing whispers that China will be asking to for more U.S. Corn, Ethanol and Pork. On the flip side, better crop ratings in Argentina, brazil and the Ukraine seem to be offsetting the bullish news. The March Corn is currently trading at 378 which is ¼ of a cent lower. The trading range has been 379 to 377.
On the Ethanol front the March contract is currently trading at 1.328 which is .001 lower in the overnight electronic session. The trading range has been 1.330 to 1.325. 11 contracts traded and Open Interest has dropped to 1,393 contracts. The market is currently showing 2 bids @ 1.326 and 1 offer@ 1.328.
On the Crude Oil front we had a bullish API Energy Stocks number last night with Crude Oil down 0.998M, Gasoline + 0.746M, Distillates -2.481M and Cushing down 0.502M. Also the Saudi’s are vowing to even cut more production to 500 thousand barrels a day. In the overnight electronic session the March Crude Oil is currently trading at 5343 which is 33 points higher. The trading range has been 5389 to 5331.
On the Natural Gas front we pulled back in the overnight electronic session from the highs as well. The March contract is currently trading at 2.593 which is 9 ½ cents lower. The trading range has been 2.699 to 2.558.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374