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 Tuesday with U.S. Balance of Trade, U.S. Exports and U.S. Imports at 7:30 A.M., Redbook at 7:55 A.M., Factory Orders and ISM Non-Manufacturing Index at 9:00 A.M., 3-Year Note Auction at 12:00 P.M. and API Energy Stocks at 3:30 P.M. On the Corn front we are seeing a change from last years harvest due to weather of course, with farmers using unharvested Corn as snow fences leaving crops in the ground to keep snow off the roads. I did witness this in my recent trip to Southern Wisconsin, and Iowa is utilizing these Cornrows and the state will hand-pick and pay landowners for Corn that is not harvested. The market is still soft despite the outside market recovery. In the overnight electronic session the March Corn is currently trading at 384 ¼ which is a ½ of a cent lower. The trading range has been 385 ¾ to 383 ½.
On the Ethanol front specialty chemical company Clariant has signed an agreement with Anhui Guozhen Group, a Chinese Green Energy company and Chemtex Chemical Engineering, for Clariants (patented) cellulosic Ethanol technology. Anhui Guozhen and Chemtex will form a joint venture with the aim of realizing a full-scale commercial plant processing agricultural waste. It would be one of the largest facilities of its kind in China. There were no trades posted in the overnight electronic session. The February contract settled at 1.360 and is currently showing 2 bids @ 1.331 and 1 offer @ 1.357 with Open Interest at 451 contracts.
On the Crude Oil front the market seems to be shrugging off any response from Iran at the moment. It has been made clear that any other attacks on U.S. interest from Iran will be met with devastating consequences. And if we knock out the few Oil refineries that they have they will be out of business for good and create their own self-destruction! In the overnight electronic session the February Crude Oil is currently trading at 6283 which is 44 points lower. The trading range has been 6315 to 6230.
On the Natural Gas front the market is doing nothing but tread water. At these levels producers still feel to be on a sinking ship. In the overnight electronic session the February Natural Gas is currently trading at 2.140 which is a ½ of a cent higher. The trading range has been 2.158 to 2.102.
Kudos to Ricky Gervais for calling out the virtues of Hollywood. To all my friends familiar with the U.S. Constitution. Article 3, Section 3, Clause 1 of the U.S. Constitution declares, that adhering to enemies of the United States, giving them aid and comfort, shall be treason.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374