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 this morning with Goods Trade Balance Adv. (Oct) and Wholesale Inventories MoM Adv. (Oct) at 7:30 A.M., Red Book at 755 A.M., S&P/Case-Shiller Home Price YoY and MoM (Sep) and House Price Index MoM (Sep) at 8:00 A.M., Consumer Confidence, New Home Sales and Richmond Fed Manufacturing Index at 9:00 A.M., Fed Brainard Speech and 5-Year Note Auction at 12:00 P.M. and API Energy Stocks at 3:30 P.M. We also have Earnings out today with Best Buy Co., Inc., Dollar Tree, Inc. and Hormel Foods Corp. to name a few before the opening bell.
On the Corn front, the Crop Progress showed Corn harvest was 84% complete, versus 76% last week, with the 1-Year 93% and the 5-Year average of 96%. Corn Inspections were relatively muted after reaching 23.8 million bushels last week. That was down 7% from last week and 49% lower than last year. Analysts were also expecting a larger tally, with an average trade guess of 25.6 million bushels. Mexico was the #1 destination, with 11.7 million bushels. The export commitments are down 47% so far year-over-year, but flagging supplies in Brazil and Argentina could mean an uptick in Corn exports in the future. We also have a winter storm to contend with coast to coast this Thanksgiving. In the overnight electronic session the December Corn is currently trading at 369 ½ which is 1 cent lower. The trading range has been 370 to 368 ¼.
On the Ethanol front, just as we are seeing strong mergers & acquisitions which is a sign the economy is performing, the Ethanol industry is continuing to evolve and becoming more popular in the U.S. and abroad. Robert White, Vice President of Industry Relations said E-15 is becoming more popular as 90% of U.S. vehicles can use it. In the overnight electronic session the January Ethanol is currently trading at 1.460 which is .013 higher. The trading range has been 1.460 to 1.451. The market is currently showing 1 bid @ 1.460 and 1 offer @ 1.469 with 9 contracts traded and Open Interest at 492 contracts.
On the Crude Oil front, we have bullish news continuing to drive the market, but we need to reach the new plateau, and by that I mean, punching through the $60 a barrel resistance. Tonight we have the API Energy Stocks and the whispers are that Cushing should have a sizable draw. In the overnight electronic session the January Crude Oil is currently trading at 5826 which is 25 points higher. The trading range has been 5835 to 5776.
On the Natural Gas front the December contract expires today. The market is trading lower ahead of this Goliath winter storm. The jet stream is having investors wondering if there is going to be a warm up to follow the cold front. In the overnight electronic session the January Natural Gas is currently trading at 2.539 which is 4 ½ cents lower. The trading range has been 2.583 to 2.511.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374