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 day with Market Composite PMI Final for December and Market Services PMI for December at 8:45 A.M., Export Inspections at 10:00 A.M., 3 & 6-Month Bill Auction at 10:30 A.M. followed by Dairy Product Sales at 2:00 P.M. On the Corn front we trade lower on Friday mainly due to farmer selling, exports and growing concerns that Brazil is on pace to have a record crop in 2020 barring any weather fiasco. In the overnight electronic session the Corn is trading humdrum with tight trading ranges. The March Corn is currently trading at 385 ¾ which is ¾ of a cent lower. The trading range has been 387 ¾ to 385 ½.
On the Ethanol front it is Last Trading Day on the January contract that still has 52 open positions. Ethanol production was down last week but still ahead of last years pace. There were no trades posted in the overnight electronic session. The February contract settled at 1.363 and is currently showing 1 bid @ 1.351 and 1 offer @ 1.372 with slow climbing Open Interest at 455 contracts.
On the Crude Oil front the story is geo-political risk to global disruptions as the Royal Navy has vessels patrolling the Strait of Hormuz to protect commercial shipping. Obviously Iran does not get the object of the exercise and President Trump made it clear not to cross that line again. Remember when the Iranians shot down an unmanned U.S. drone and the President at the last-minute said there was no U.S. bloodshed and called of an attack that would have killed well over 100 Iranian civilians. The Iranians also bombed Oil field in Saudi Arabia before that and President Trump said the Saudi’s have to protect their own interest but still offer support. The Iranians wanted to test the President and amp up their terrorist tactics and killed a U.S. civilian working in Iraq. The President wasted no time in protecting U.S. interest and finally putting that Iranian General to justice for decades of killing U.S. Servicemen. What was he actually doing in Baghdad anyway? Hmm… In the overnight electronic session the February Crude Oil is currently trading at 6375 which is 70 points higher. The trading range has been 6472 to 6346.
On the Natural Gas front producers are concerned with the mild winter so far prices will drop to sub-$200 very soon. In the overnight electronic session the February Natural Gas is currently trading at 2.145 which is 11/2 of a cent lower. The trading range has been 2.173 to 2.099.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374