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 last trading day of the decade with Redbook at 7:55 A.M., S&P/Case-Schiller Home Price at 8:00 A.m., Consumer Confidence at 9:00 A.M. And API energy Stocks at 3:30 P.M. New decade approaching same old Iran. A pro-Iranian Hezbollah Iraqi mob stormed the U.S. Embassy in Baghdad. Six U.S. Marine guards fired warning shots from rooftops, followed by teargas and stun grenades. It is just a matter of time before these terrorists meet their maker. Getting back to the prosperous future that 2020 seems to be getting off to a start that 2019 were confused with what good fortunes lay ahead. The only thing we need to fear is fear itself. Recession fears? I think not with the Stock Market rolling. Trade deals on the horizon with China, Canada, Mexico and England that will create a powerhouse of trade that will have business booming. On the Corn front the March Corn is currently trading at 387 ¼ which is 1 cent lower. The trading range has been 388 ¼ to 386 ¼.
On the Ethanol front record Brazil Ethanol production may still not be enough to meet demand in the current season that produced 35 billion liters. Ethanol production stops in mid-December in Brazil’s main center-south cane belt, returning in April when Sugarcane processing begins with the new season. Information provided by Marcelo Teixeira with Reuters. There were no trades posted in the overnight electronic session. The February contract settled at 1.416 and is currently showing 2 bids @ 1.384 and 1 offer @ 1.413 with Open Interest at 434 contracts.
On the Crude Oil front the market is trading lower with light volume in the holiday markets and API inventories coming out later in the day. In the overnight electronic session the February Crude Oil is currently trading at 6108 which is 60 points lower. The trading range has been 6183 to 6070. I am expecting withdrawals on tonight’s API Energy Stocks which should create a bullish spin despite the geo-political scene.
On the Natural Gas front the market cannot seem to muster ant rally. Although warmer temperatures are going to follow the more seasonable front, the market is not shaking the bears out of the market. In the overnight electronic session the February contract is currently trading at 2.191 which is a ½ of a cent higher. The trading range has been 2.207 to 2.173.
Have a Great Trading Day & A Happy New Year!