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 started off the day with MBA Mortgage Applications coming in at 5.4% with the previous 8.!% while the 30-Year Mortgage Rate came in at 3.9% versus the previous 3.99%. At 7:30 A.M. we have Wholesale Trade and at 9:00 A.M. we have Jolts Job Openings, EIA Energy Stocks at 9:30 A.M., FED Chair Powell Speech at 10:00 A.M., 10-Year Note Auction at 12:00 P.M. and FOMC Minutes at 1:00 P.M.. The U.S.-China talks are scheduled for the same time if there will be any talk at all. Now let’s take a stroll down Memory Lane if you can remember at all. This is the Venezuelan Timeline, 1992 became the richest country in Hemisphere, 1997 largest purchaser of F-150, 2001 voted for socialist president “Income Inequality”, 2004 Private Healthcare is completely socialized, 2007 All higher education “free”, 2009 Socialist banned private ownership of guns, 2012 Bernie Sanders praises their “ American Dream”, 2014 Opposition Leaders are imprisoned, 2016 Food/Healthcare shortages become widespread, 2017 CONSTITUTION and ELECTIONS are SUSPENDED< 2019 Unarmed citizens massacred by own government! Sound Familiar? You must be watching the mainstream media and impeachment talk not proceedings as written in the CONSTITUTION! Bernie Sanders had health issues but his healthcare was the best for him and not what he advertises for us. The Venezuelan time line of 27 years lasted longer than the 12 years of the Third Reich. And in the end the results were the same as in all former socialist countries millions of innocents killed and the power brokers that were able to save themselves from the wrath of the basket of deplorables ran away with the countryman’s purse. So any of you Antifa junior terrorist pick up a book and read it instead of burn it and do not listen to your college professor and realize there are consequences to your escapades so get out of your college dorm or mommy’s basement and get a job!
On the Corn front, talk that harvest is 19% complete but with fields watered down and soggy if they are not under water the harvest mission is far from complete and the mission may be scrapped after an early frost. Temperatures will be dipping into the low 30’s this weekend with possibility of snow should bring reality back to the futures market. We have Crop Production USDA Supply/Demand data tomorrow. And even though we look at these numbers this weekend it may or may not shed light on the urgency and the serious nature the health of the crop is in. And this weekend could be the Last Hurrah! In the overnight electronic the December Corn is currently trading at 397 which is 1 ¼ of a cent higher. The trading range has been 397 to 393.
On the Ethanol front, the November contract posted a trade at 1.454 which is .012 higher. The market is bracing for a move on the Corn and Energy prices while we are assuming that the U.S.-China trade talks are on as scheduled. The market is currently showing 4 bids @ 1.440 and 1 offer @ 1.458 with 1 contract traded and Open Interest at 411 contracts.
On the Crude Oil front last nights API Energy Stocks showed builds in Crude Oil at 4.1 mln barrels, Cushing up 1.24 mln barrels while products well below the five-year average with Gasoline stocks down 5.937 mln barrels and Distillates down 3.984 mln barrels. This does not paint a rosy picture for a cold winter folks. In the overnight electronic session the November Crude Oil is currently trading at 5346 which is 83 points higher. The trading range has been 5355 to 5231.
On the Natural Gas front the market is teetering on demand issues with plenty of supply even with Cold weather forecasted in this shoulder season. In the overnight electronic session the November Natural Gas is currently trading at 2.273 which is 1 and ½ of a cent lower. The trading range has been 2.306 to 2.261.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374