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 Monday with Consumer Inflation Expectations and Export Inspections at 10:00 A.M., 3-Month & 6-Month Bill Auction at 10:30 A.M. and 10-Year Note Auction at 12:00 P.M. A Chinese official said Beijing wants a prompt settlement of its trade war with Washington. A deputy commerce minister said Beijing wants “satisfactory results as soon as possible”. The official gave no details of talks on the “Phase 1” deal announced by President Trump in October. My question is… What’s your hurry? The answer is another U.S. tariff hike on $160 billion of Chinese imports to take effect on Sunday. China announced it was carrying out a promise to waive punitive tariffs on U.S. Pork & Soybeans. It seems to me China is in need to get this deal done after trialsome negotiations. And they are dancing to our tune and we are not to theirs. The Soybeans continue last week’s upswing in prices.
On the Corn front the market is quiet with a tight trading range. Tomorrow we have Crop Production USDA Supply/Demand and WASDE reports. The 2019 harvest story is far from over. Normally harvest would be close to wrapping up, instead, snow-covered Cornfields in states like North Dakota, Michigan and Wisconsin with forecast of more snow on the way this week. The USDA latest Crop Progress showed 36% of North Dakota’s Corn had been harvested as of last Monday which is 59% points lower than the average. Source of this news from Tyne Morgan with Farm/Journal-Ag/Web. In the overnight electronic session the March Corn is currently trading at 375 ¾ which is 1 cent lower. The trading range has been 378 ¼ to 375 ¼.
On the Ethanol front news has been quiet since Friday for the most part. The “Phase 1” deal or no deal is what investors are interested in at the moment. There were no trades posted in the overnight electronic session. The January contract settled at 1.375 and is currently showing 1 bid @ 1.366 and 1 offer @ 1.381 with Open Interest at 479 contracts.
On the Crude Oil front the market is coming in lower this morning which I believe is triggering another buying opportunity. U.S. exports exceeded imports and the OPEC production cut agreement will show up as withdrawals will mount and supplies will grow tighter and tighter. In the overnight electronic session the January Crude Oil is currently trading at 5899 which is 21 points lower. The trading range has been 5923 to 5823.
On the Natural Gas front investors have a keen eye on the U.S. and European weather modules agree we will be seeing more moderate to warmer temperatures which had the bulls heading for the exits. In the overnight electronic session the January Natural Gas is currently trading at 2.229 which is 10 ½ cents lower. The trading range has been 2.243 to 2.158.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374