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 Housing Starts & Permits at 7:30 A.M., Fed Harker Speech at 8:00 A.M., Industrial Production at 8:15 A.M., Michigan 5-Year Inflation Expectations and Jolt’s Job Openings at 9:00 A.M., Fed Quarles Speech at 11:45 A.M. and Baker Hughes Rig-Count at High Noon. On the Corn front I was wrong and surprised that the funds were net long and started to puke out after Friday’s USDA number. And as far as the U.S.-China Trade Deal our growing exports to Hong Kong and Japan have dissipated. They were the middleman reselling to the Chinese. But now with the trade deal in place our overall exports did not grow as speculators were banking on. In the overnight electronic session the March Corn is currently trading at 378 ¼ which is 2 ¾ cents higher. The trading range has been 379 ½ to 376 ¾.
On the Ethanol front the U.S.-China Trade Deal eases tensions but tariffs cloud sales of LNG and Ethanol flows. China could increase U.S. Energy purchases by $52.4 billion. 5% tariffs remain on LNG and 70% tariff remain on Ethanol and until we can lift them, hopefully before the election. In the overnight electronic session the February contract posted a trade at 1.305 which is .006 higher. The market is currently showing 6 bids @ 1.305 and 1 offer @ 1.308. 15 contracts changed hands and Open Interest is at 330 contracts.
Have a Great Trading Day