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
MBA Mortgage Applications came in at 1.5% vs. the previous -2.2%, MBA 30-Year Mortgage Rate came in 3.97% vs. the previous 3.99%, at 7:30 A.M. we have Adv. Durable Goods, GDP (Q-3) and Jobless Claims, Chicago PMI at 8:45 A.M., Pending Home Sales at 9:00 A.M., EIA Energy Stocks at 9:30 A.M., 4-Week and 8-Week Bill Auction at 10:30 A.M, EIA Gas Storage at 11:00 A.M., 7-Year Note Auction at 12:00 P.M., Beige Book at 1:00 P.M. and Dairy Product Sales at 2:00 P.M. On the Earnings front John Deere met the streets expectations but shares are trading lower as investors are not optimistic of Farm equipment sales in 2020 unless there is major traction in the U.S.-China trade talks.
On the Corn front the December contract settles 3 cents lower in yesterdays action on light holiday volume and more export fears with South America and the Ukraine export prices a discount to the U.S. This does not paint a pretty picture to see demand pick up anytime soon. The winter storm won’t be helpful to finish harvest as farmers were once again working overtime to get as much done before the front hit. In the overnight electronic session the December Corn is currently trading at 367 ¾ which is a ¼ of a cent higher. The trading range has been 368 ¾ to 367.
On the Ethanol front the U.S. Ethanol Trade Association “Growth Energy” has welcomed The Anderson’s as its newest producer plant member. The addition brings associations membership to a total of 103 producer plant members, who represent 8.7 billion gallons of total U.S. Ethanol production. There were no trades posted in the overnight electronic session. The January contract settled at 1.419. The market is currently showing 1 bid @ 1.423 and 1 offer @ 1.449 with Open Interest climbing to 503 contracts.
On the Crude Oil front last nights API Ener Stocks showed build in Crude Oil of 3.639 mln barrels, Cushing draws of 516 thousand barrels, Gasoline builds of 4.378 mln barrels and Distillates shows draws of 665 thousand barrels. What a surprise! The International Energy Agency (IEA) is once again warning of a glooming Oil glut. What is this? A broken record, Chicken Little the sky is falling?, Ground Hog Day?, The boy who cried wolf?, fake news or did they get their facts from Adam Schiff? One thing is for sure they will be way wrong again! In the overnight electronic session the January Crude Oil is currently trading at 5836 which is 5 tics lower. The trading range has been 5868 to 5816.
On the Natural Gas front we fit in the EIA Gas Storage a day early due to the Thanksgiving Holiday. The Thomson Reuters poll with 12 analysts participating, estimated draws ranging from 16 bcf to 42 bcf with the median draw of 28 bcf. This compares to the one-year withdrawal of 62 bcf and the five-year average draw of 41 bcf. These numbers were supplied by Anjishnu Mondal, Scott DiSavino and Cynthia Osterman with Thomson Reuters. In the overnight electronic session the January Natural Gas is currently trading at 2.523 which is 1 cent lower. The trading range has been 2.558 to 2.505.
We have a Lot to be Thankful for and Let’s not forget about our Troops Abroad Making this Holiday Possible!
Questions? Ask Dan Flynn today at 312-264-4374