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 Advance Durable Goods and Personal Income at 7:30 A.M. followed in the afternoon with Hogs & Pigs at 2:00 P.M. On the Corn front, the market was heavy in yesterday’s action with weak Export Sales data and has carried over in the overnight action. Even with more saturating rains forecasted and harvest already behind, we will start to worry about frost as farmers are moving as quickly as possible to get the crop out of the ground if they ever get dry ground. In the overnight electronic session the December Corn is currently trading at 370 ½ which is 2 cents lower. The trading range has been 371 ¾ to 370.
On the Ethanol front W2 Fuel, a southeast Iowa biodiesel plant has shut down due to the unclear future of the Renewable Fuel Standard (RFS) and the Small Refinery Exemptions SRE). This is a tough time in both industries with frackers going out of business and the decline of production in the Permian Basin. In the overnight electronic session the November contract posted a trade at 1.382 which is .003 lower. The market is currently showing 1 bid @ 1.374 and 1 offer @ 1.385 with 1 contract traded and Open Interest at 438 contracts.
On the Crude Oil front, we rallied back in yesterday on news the U.S. is sending Troops and defensive Air Defense Systems to Saudi Arabia. Then the market broke early this morning as Saudi Arabia called for a partial ceasefire in Yemen. And breaking news that Iran’s President Rouhani said in a press conference that the U.S. offered to remove all sanctions on Iran in exchanged for talks. This does sound like fake news to me but I can’t control the algorithm traders. This comes after Israeli Brigadier General Dror Shalom said, “We are starting to approach the level of war and it’s only a matter of time” with Iranian missiles that can hit Israel. In the overnight electronic session the November Crude Oil is currently trading at 5484 which is 157 points lower. The trading range has been 5662 to 5475. I just received a press release from the White House that said the Iranian story is baseless and false. Like the Ukrainian story, Never Happened!
On the Natural Gas front we are range bound with the November contract currently trading at 2.418 which is 2 ½ cents lower. The trading range has been 2.451 to 2.402.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374