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 MBA Mortgage Applications and MBA 30-Year Mortgage Rate at 6:00 A.M., ADP Employment Change at 7:15 A.M., Fed Brainard Speech at 9:00 A.M., EIA Energy Stocks at 9:30 A.M., 10-Year Note Auction at 12:00 P.m. and Consumer Credit Change at 2:00 P.M. On the Corn front a picture that went viral of a Corn spill on train tracks in Minnesota located in the Hennepin County suburb of Crystal stretching to Soo Line Park. The Canadian Pacific Rail was contacted but we have heard nothing yet. The explanation by a train engineer that chose not to be identified said the Corn hauled in grain hoppers was not properly closed or latched and the rattle caused the product to slowly spill and empty. The real news in this market for now is tomorrows Export Sales and the big one, Fridays Crop Production, Grain Stocks and USDA Supply/Demand. In the overnight electronic session the March Corn is currently trading at 383 which is 1 ½ of a cent lower. The trading range has been 384 to 382 ¼.
On the Ethanol front China has suspended its plan to implement a nationwide mandate to blend 10% of Ethanol in the nations Gasoline, due to the countries Corn shortages. This could also be a sign of Clariant and Anhui Guozhen Group (a Chinese Green Energy company) and Chemtex Chemical Engineering, aim to build a facility to process agriculture waste to product. This could be a further good sign to farmers for Corn exports as we are scheduled to sign Phase 1 of the Trade Deal next week. The February Ethanol is currently trading at 1.350 which is .003 lower. The trading range has been 1.359 to 1.350. The market is currently showing 2 bids @ 1.359 and 2 offers @ 1.353 with 12 contracts traded and Open Interest at 437 contracts.
On the Crude Oil front the risk on is coming off for now after the Iranian airstrike on Iraqi military bases with no U.S. casualties so far. Thank God! This could be the end of hostilities for now or the end of Iran’s missile silos, Nuke Sites and Oil refineries putting them out of business for good. In the overnight electronic session the February Crude Oil is currently trading at 6179 which is 91 points lower. The trading range has been 6565 to 6131. We are anticipating a bullish EIA Energy Stocks number that could start another rally.
On the Natural Gas front the February contract is currently trading at 2.182 which is 2 cents higher. The treading range has been 2.185 to 2.135. This market is still treading water.
God Bless Our Troops!
God Bless the United States of America!
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374