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
Challenger Job Cuts came in at 56.66K versus a forecast of 78K and the previous 67.735K. At 7:30 A.M. we have Export Sales and Jobless Claims, Factory Orders at 9:00 A.M., 4 &8-Week Bill Auction at 10:30 A.M., Total Vehicle Sales at 3:00 P.M. and more Fed speeches with Fed Kaplan speech at 5:30 P.M., Fed Kashkari speech at 7:00 P.M., Fed Williams speech at 7;45 P.M. And here we go again… More casualties with the coronavirus as anticipated and the market is still in freak mode after the headline. As expected companies are putting on hiring freezes to brace for the numbers of our normal daily activities put to a halt. Remember small business’ are the cog in the wheel to this rapidly growing and soaring economy. We will feel the pinch but if government steps in at the right time to help the private sector the sting will not hurt as bad. On the Corn front what a difference a day makes. Mixed Export Sales really did little to change the heaviness in the market. We are close to planting season as some states are already planting Corn and Rice. In the overnight electronic session the May Corn is currently trading at 381 which is 4 cents lower. The trading range has been 384 ½ to 379 ¾.
On the Ethanol front there were no trades posted in the overnight electronic session. The April contract settled at 1.284 with the market currently showing 1 bid @ 1.261 and 1 offer @ 1.274 with Open Interest at 358 contracts.
On the crude Oil front Russia, Russia, Russia or if you remember the Brady Bunch Marcia, Marcia, Marcia. Will they be on board for cuts or not? If the 1.5 million barrel a day cut is agreed to that several sources are saying yes or no. With no official confirmation and as usual Russia is playing possum and waiting to the last second to agree. In the overnight electronic session the April Crude Oil is currently trading at 4688 which is 10 points higher. The trading range has been 4757 to 4632.
On the Natural Gas front we have the weekly EIA Gas Storage data and the Thomson Reuters poll with 16 analysts participating expect withdrawals ranging from 113bcf to 88bcf with the median draw of 110bcf and the actual number 108bcf. In the overnight electronic session the April Natural Gas is currently trading at 1.817 which is 1 cent lower. The trading range has been 1.847 to 1.795.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374