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
At 6;00 A.M. we had the MBA Mortgage Applications come in at -29.4% versus the previous -8.4% and the MBA 30 Year Mortgage Rate come in at 3.82% vs. the previous 3.74%. We also have Adv. Durable Goods at 7:30 A.M., House Price Index MoM at 8:00 A.M., EIA Energy Stocks at 9:30 A.M., 5-Year Note Auction and 2-Year FRN Auction at 12:00 P.M. and Dairy Product Sales at 2:00 P.M.
The White House is pitching a $6 Trillion coronavirus stimulus package ahead of the vote today. The provisions in this package will help transportation of goods and medicine equipment get to our people who desperately need them.
On the Corn front farmers have been willing to sell some crop on rallies to even out what they expect their profit center to be. We have seen tumultuous changes in prices creating volatility some traders have never seen before. The stimulus package could be just what the doctor ordered. In the overnight electronic session the may Corn is currently trading at 350 ½ which is 3 ¼ cents higher. The trading range has been 352 ¾ to 347 ¼.
On the ethanol front there were no trades posted in the overnight electronic session. The May contract settled at 0.922 and is currently showing 2 bids @ 0.830 and 1 offer @ 0.908 with Open Interest at 317 contracts. We do have a lot of ethanol plants shutting down due to low prices and lack of rail transportation at the moment with every industry getting hurt in one way or another. This is an industry we need to keep on our radar as well.
On the Crude Oil front last nights API Energy Stocks showed Crude -1.2mb, Cushing +1.1mb, Distillates -1.9mb and Gasoline -2.6mb. Still plenty of drama between the Russians and Saudi’s. The Saudi’s are contemplating starting a new OPEC cartel now that Saudi Aramco is now a public company. Also Nigeria chimed in that they will be flooding the market with Oil as well. We will see how this plays out and see where we go with this. In the overnight electronic session the May Crude Oil is currently trading at 2338 which is 63 points lower. The trading range has been 2524 to 2315.
On the Natural gas front the market is treading water after recent steep declines. In the overnight electronic session the April contract is currently trading at 1.678 which is 2 ½ cents higher. The trading range has been 1.716 to 1.654.
Have a Great Trading Day!