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 earnings and GM and Pharmaceuticals could put a drag on the stock market. We also have Red Book at 7:55 A.M., S&P/ Case-Shiller Home Price at 8:00 A.M., Consumer Confidence and Pending Home Sales at 9:00 A.M., API Energy Stocks at 3:30 P.M. and the first day of the FOMC Meetings today. Investors are anticipating the FED to cut rates tomorrow ¼ of a point. On the Corn front, Crop Progress showed Corn was 41% harvested , this is down 20% from last year and 20% from the five-year average. With saturating rains that even floods farmland away from rivers as the amount of water really has no place to go. And now we look forward to snow and cold weather. In the overnight electronic session the December Corn is currently trading at 383 which is 1 cent lower. The trading range has been 384 ½ to 382 ¼.
On the Ethanol front, the National Sorghum Producers (NSP) announced a partnership with USDA Natural Resources Conservation Services in Kansas. NSP CEO Tim Lust said, “Today we will continue documenting, they have been good stewards of the environment around them. With 74% Sorghum grown using conservation tillage an 91% receiving no supplemental irrigation water, improvement is a tall order, but we believe our farmers are up to the challenge. There were no trades posted in the overnight electronic session. The December contract settled at 1.426 and is currently showing 2 bids @ 1.411 and 1 offer @ 1.544 (another wide-spread) with Open Interest at 431 contracts.
On the Crude Oil Crude Oil, front we are dropping in the overnight electronic session. It could be based on the International Energy Agency (IEA) changing their numbers once again because they were wrong in the first place. No investor should listen to this agency any longer. They are fake news and fake headlines and they must have an ulterior motive to have their headline so wrong so many times. Do they have a book to play? Look at their track record, it seems very interesting, they should be investigated. The algorithms may have joined the party with whisper numbers all over the place on either builds or draws and this weekends Tropical Storm with heavy rains could have disrupted shipping and skewered those numbers. In the overnight electronic session the December Crude Oil is currently trading at 5515 which is 66 points lower. The trading range has been 5588 to 5493.
On the Natural Gas front the November contract expires today. And the market’s weather rally continues. In the overnight electronic session the December Natural Gas is currently trading at 2.630 which is 7 ½ cents higher. The trading range has been 2.638 to 2.555.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374