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 Red Book at 7:55 A.M., FED Bostic Speech at 8:00 A.M., Consumer Inflation Expectations and Export Inspections at 10:00 A.M. 3 & 6 month Bill Auction at 10:30 A.m., NOPA Crush at 11:00 A.M. Monthly Budget Statement at 1:00 P.M., FED Daly Speech at 2:30 A.M. and Crop Progress at 3:00 P.M. On the Corn front, the U.S.-China trade talks looked like a done deal on Friday and now we are doing the limbo dance or better yet in limbo as the Chinese are asking new provisions are on tariffs and this did anything but energize the markets, especially with light volume with several holiday’s being observed yesterday. There is a lot of uncertainty of the conditions of the crop with the cold front sticking around. Maybe todays Crop Progress data could shed some light of the imposing impact. Our exports are down due to product being moved much cheaper in South America and Ukraine. And the obvious repercussions with the delicate negotiations with China. In the overnight electronic session the December Corn is currently trading at 394 ½ which is 3 ¼ cents lower. The trading range has been 398 ½ to 394.
On the Ethanol front, there were no trades posted in the overnight electronic session. The November contract settled at 1.500 and the market is showing a very wide-spread with 1 Bid @ 1.405 and 1 offer @ 1.498 with Open Interest at 435 contracts. Bloomberg broke a story that China wants the U.S. to remove tariffs to hit $50 billion on imports otherwise it would be open season on U.S. Cotton, Ethanol and Soybeans.
On the Crude Oil front, the market initially took the China news negatively but is mounting a comeback with the November contract currently trading at 5344 which is 15 points lower. The trading range has been 5362 to 5239. This turnaround could be deemed that the Chines said nothing about Crude Oil only Ethanol.
On the Natural Gas front the weather is keeping strength in the market. In the overnight electronic session the November Natural Gas is currently trading at 2.305 which is 2 ½ cents higher. The trading range has been 2.310 2.266.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374