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 Michigan Consumer Sentiment, Michigan 5-Year Inflation, Michigan Consumer Expectations and Michigan Current Conditions Final at 9:00 A.M., Baker Hughes Oil Rig-Count at high noon, Monthly Budget Statement at 1:00 P.M. and Cattle on Feed at 2:00 P.M. On the Corn front, we are expecting more below normal temperatures and rains with one model forecasting lows in 20’s to 30’s with wind chills that could reach 5 degrees. These forecasts could keep us in harvest for a much longer time that anyone would have thought. This has been a growing year with plenty of surprises and I guess we should not be shell-shocked if we get smacked again from Mother Nature. And depending on the long-term weather, this put into play how farmers will be able to get the fields in shape for next years plantings. In the overnight electronic session, the December Corn is currently trading at 386 ¼ which is a ½ of a cent lower. The trading range has been 388 ¼ to 386 ¼.
On the Ethanol front Iowa Republican Senator Joni Ernst said she is ready to call for the resignation of U.S. Environmental Protection Agency Chief Andrew Wheeler if the agency does not uphold an agreement restoring demand for Ethanol under the Renewable Fuel Standard (RFS). She continued , “If we get to the point where the EPA is not following through on what the President directed them to do, then we will have to hold them accountable.” There were no trades in the overnight electronic session. Since the Open Interest in the December contract has outdistanced the November we will focus on the December which settled at 1.432 and is currently showing 1 bid @ 1.432 and 1 offer @ 1.451 with Open Interest at 364 contracts.
On the Crude Oil front, the market with the entire complex is not looking into the crystal ball like the Futures markets have done in the past. It just seems the algorithms have made the fundamentals take a back seat. The Algors seem to be jumping on every headline, bogus or not and drive traders that do not have deep pockets out of the market only to boomerang back after the damage has been done. They will soon get an education when the realization that the shortages are real and when that fundamental of shortages are realized they will know what to do. In the overnight electronic session the December Crude Oil is currently trading at 5615 which is 8 points lower. The trading range has been 5624 to 5583.
On the Natural Gas front the EIA Gas Storage was a push for the most part. And the market sold off even with cold weather on the horizon. In the overnight electronic session the December Natural Gas is currently trading at 2.296 which is 2 cents lower. The trading range has been 2.336 to 2.290.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374