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 Eve of Christmas Eve with Durable Goods and Chicago Fed Activity Index at 7:30 A.M., New Home Sales at 9:00 A.M., Export Inspections at 10:00 A.M., 3& 6-Month Bill Auction at 10:30 A.M., 2-Year Note Auction at 12:00 P.M. with Cold Storage and Hogs & Pigs report at 2:00 P.M. On the Corn front the market is struggling to punch through resistance at 390 not to mention psychological resistance at 400. There was movement in farmer selling, but all eyes are bullish in 2020 with the trade deals in place. Hopefully, Mother Nature will be more cooperative to us than in 2019. Everybody loves a bull market and Investors will be watching exports in South America with demand under the microscope as we wait for the running of the bulls. In the overnight electronic session the March Corn is currently trading at 388 ¼ which is a ½ of a cent higher. The trading range has been 388 ½ to 387 ¼.
On the Ethanol front producers are accusing the EPA of breaking President Trump’s promise on the Renewable Fuel Standard (RFS). The beef is waivers on blending’s given to Oil refineries that reduce the market by hundreds of millions of gallons. I do have to beg to differ in a way, with the trade deals achieved blending will not be a major obstacle with the export market wide open. In the overnight electronic session the January Ethanol is currently trading at 1.400 which is .010 higher. The trading range has been 1.400 to 1.354. The market is currently showing 1 bid @ 1.371 and 1 offer @ 1.399 with 2 contracts traded and Open Interest at 240 contracts.
On the Crude Oil front be wary of the thinly traded holiday market. Fundamental news remain bullish, however, one headline could ZAP the market on a computer generated selloff. And when investors gather themselves and realize there was no reason for the bloodshed the market will continue to trade basic supply and demand that brought us here in the first place. In the overnight electronic session the February Crude Oil is currently trading at 6028 which is 16 points lower. The treading range has been 6056 to 6010.
On the Natural Gas front it is a textbook Monday with the market rallying on a bullish Gas Storage number and warm temperatures did not sway or hesitate bullish investors. This is the volatility we have seen in this market and will continue as we are almost done in December and the temperature is 50 degrees. Not a bullish prospect for producers. In the overnight electronic session the January Natural Gas is currently trading at 2.228 which is 10 cents lower. The trading range has been 2.269 to 2.211.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374