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 Fed Clarida Speech at 7:00 A.M., Export Sales delayed because Washington D.C. cannot go to work. What a surprise. Jobless Claims at 7:30 A.M., Fed Kashkari Speech at 8:30 A.M., EIA Gas Storage at 9:30 A.M., 4 & 8-Week Bill Auction and Fed Williams Speech at 10:30 A.M., 30-Year Bond Auction at 12:00 P.M. and Fed Evans Speech at 1:20 P.M. On the Corn front Brazil lost a major buyer while farmers are roughing out drought conditions as U.S. farmers saw last year what more bad news can you pile on at once. Iran announced it will no longer purchase Corn from Brazil. On an annual basis, Iran purchases $2.2 billion worth of Corn, Soybeans and beef. This move was made in retaliation to Brazil President Jair Bolsonaro standing by President Trump’s side following the killing of the Iran regime favorite general or terrorist. This could even open the door to further exports as we close in the U.S.-China trade agreement. In the overnight electronic session the March Corn is currently trading at 386 ¼ which is 2 cents higher. The trading range has been 387 to 383 ½. The Grain complex is in the green early and looks like short covering before tomorrows big report day at 11:00 A.M.
On the Ethanol front we have activity as producers and speculators alike bank on a market that will see more blends in countries as to satisfy demand of fuel consumption. In the overnight electronic session the February Ethanol is currently trading at 1.343 which is .008 higher. The trading range has been 1.343 to 1.317. The market is currently showing 1 bid @ 1.325 and 1 offer @ 1.343 with 10 trades changing hands and Open Interest at 441 contracts.
On the Crude Oil front we are hoping the fireworks have stopped and we go back to basic supply and demand with risk premium at a minimum. I am still overall bullish and would look to buy value at the 5850 level to catch a falling knife. In the overnight electronic session the February Crude Oil is currently trading at 5939 which is 22 points lower. The trading range has been 6031 to 5928.
On the Natural Gas front the market continues to go nowhere fast, except steady to lower. In the overnight electronic session the February Natural Gas is currently trading at 2.131 which is 1 cent lower. The trading range has been 2.170 to 2.109. And we have the EIA Gas Storage at 9:30 A.M. and the Thomson Reuters poll with 17 analysts participating estimate withdrawals ranging from 73 bcf to 41 bcf. This compares to the One-year withdrawal of 81 bcf and the five-year average draw of 182 bcf.
God Bless Our Troops Serving us!
Have a Great Trading Day!
Dan FlynnQuestions? Ask Dan Flynn today at 312-264-4374