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 Personal Income at 7:30 A.M. and Chicago PMI at 9:00 A.M. On the Corn front, the Export Sales numbers were negative while not a big surprise the December Corn still manage to settle ¼ of a cent higher in the open out-cry session. The China news that they will may not retaliate on the new round of tariffs and wants to negotiate calmly. To me this means that they are desperate to get a deal done, but they have to show they are sincere about Intellectual Property Rights as several Presidents never challenged them, and they are not used to not getting their way. With U.S. companies making plans to move to alternative Asian countries as a hub for U.S. product. While the recession folks talk fear and say we lost our market share and will never get it back, I say you must be Nostradamus. China is dying on the vine and that is why they came back to the table before more tariffs are imposed. Another mistake past administrations made was putting all of our eggs in one basket. Weather, month and quarter are other reasons the Corn found support. In the overnight electronic session the December Corn is currently trading at 361 which is 1 ¼ of a cent lower. The trading range has been 363 to 358.
On the Ethanol front, the market is easing off current gains following the rest of the Energy Complex. Good news has come but we will be following the U.S.-China latest soap opera. In the overnight electronic session the October Ethanol posted a trade at 1.350 which is .006 lower. The market is currently showing 2 bids @ 1.344 and 1 offer @ 1.358 with 1 contract traded and Open Interest dropping slightly to 441 contracts.
On the Crude Oil front were trading lower as we moved higher very quickly on the huge draws on the weekly stocks and the uncertainty of tricky Hurricane Dorian. Investors are concerned about demand destruction if Dorian wallop a punch and electricity could be down for a while and no one will be able to use Energy. But, this too could boomerang if the current cone is true and Dorian could be fixated on the Gulf of Mexico and could do major damage to many refineries. In the overnight electronic session the October Crude Oil is currently trading at 5615 which is 56 points lower. The trading range has been 5672 to 5570.
On the Natural Gas front investors are eyeballing Dorian as well for damage control. In the overnight electronic session the October Natural Gas is currently trading at 2.286 which is 1 cent lower. The trading range has been 2.291 to 2.269.
Have a Great Trading Day & Safe Labor Day Weekend!
Questions? Ask Dan Flynn today at 312-264-4374