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 Business Inventories, Export Sales, New York Empire State Manufacturing Index and Retail Sales at 7:30 A.M., Industrial production and Capacity Utilization at 8:15 A.M., Business Inventories at 9:00 A.M., NOPA Crush at 11:00 A.M. and Baker Hughes Rig-Count at High Noon. Braking news of traction in the U.S.-China trade talks have investors and traders alike thinking, “haven’t we been down this Cul de Sac before. Corn traded higher in yesterday’s action with several variables factoring in this oversold market. Harvest completion is at a guess, and unharvested Corn which is wetter than normal only continue to burden farmers in this tough 2019 year. In the overnight electronic session the December Corn is currently trading at 375 ¾ which is unchanged. The trading range has been 376 ½ to 375. The sign of rural U.S. in 2019 is. “Let’s weather the Storm”… And continue in 2020 and beyond.
On the Ethanol front, we see an upside on Ethanol production, but profit margins and revenue keep the pace in a trot as we have not topped last week’s production over a year ago. Several factors continue to haunt this market whether it is competition from South America which their weather is showing favorable signs to produce a bumper crop in the early going of the game. This has pontificators guessing what the U.S.-China trade talks will bear any fruit or will China turn their backs on U.S. products. Just speaking for me, they will not and buy the best value they can buy. In the overnight electronic session, the December Ethanol is currently trading at 1.421 which is unchanged. The trading range has been 1.427 to 1.421. The market is currently showing 1 bid @ 1.422 and 1 offer @ 1.433. 2 contracts traded and Open Interest is at 340 contracts.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374