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
Weather is now moving into playing a pivotal role as we move closer to Planting Intentions. U.S.-China trade talks just keep investors salivating on positive news and we all are licking our chops for an end game and Chinese negotiators may be playing that card keeping their hand close to their vest. It is in their best interest to have an end game as well. Exports were lower than last week and a year ago. More whispers that crops are improving in the Black Sea and South America regions. Soil saturation is high and with the coming thaw we could see a delay in fieldwork ahead of plantings. And there is talk that funds were more short than anticipated. In the overnight electronic session the May Corn is currently trading at 362 ¼ which is a ¼ of a cent higher. The trading range has been 364 to 361 ½.
On the Ethanol front the April contract is currently trading at 1.296 which is .003 higher. The trading range has been 1.296 to 1.295. 2 contracts traded and Open Interest rose to 1,092 contracts. The market is currently showing 1 bid @ 1.294 and 1 offer @ 1.298. The market is digesting the latest news on the budget calling for a 31% cut in EPA programs and still being tantalized by the U.S.-China trade talks.
On the Crude Oil front the U.S. is withdrawing remaining staff from the embassy in Venezuela with deteriorating conditions in the country. We also have OPEC production cuts making an impact and we are expecting draws on tonight’s API Energy Stocks and Tomorrows EIA Energy Stocks. In the overnight electronic session the April Crude Oil is currently trading at 5725 which is 46 points higher. The trading range has been 5746 to 5674.
On the Natural Gas front we are expecting a spring tease the next couple of days and then back to average temperatures as we move into shoulder season and the market is acting like it. In the overnight electronic session the April Natural Gas is currently trading at 2.757 which is 1 ½ of a cent lower. The trading range has been 2.786 to 2.752.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374