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 Export Sales, GDP (Q4-19) and the big one everyone will be watching Jobless Claims at 7:30 A.M., EIA Gas Storage at 9:30 A.M., Kansas Fed Manufacturing Index at 10:00 A.M., 4-Week & 8-Week Bill Auction at 10:30 A.M., 7-Year Note Auction at 12:00 P.M., followed by Hogs & Pigs at 2:00 P.M. We are hoping the House will pass the stimulus package as Jobless claims are soaring as expected. On the Corn front we had better than expected Export Sales but keep in mind with the fragile global economy there can be cancellations. In the overnight electronic session the may Corn is currently trading at 346 ¼ which is 2 ¼ cents lower. The trading range has been 348 ¾ to 344 ¼.
On the Ethanol front sad numbers continue to keep activity down in this market and again with no trade in the overnight electronic session. The May contract settled at 0.933 and is currently showing another wide-spread with 3 contracts bid @ 0>873 and 1 offer @ 0.980 with Open Interest at 348 contracts.
On the crude oil front the market is rallying on the possibility of some demand spur and the stock Market if the House passes the stimulus measure and OPEC and OPEC+ stop continuing their path of demand destruction in their market share. I do expect the stimulus package a GO! And the market will reverberate the confidence as we continue to navigate unchartered waters. In the overnight electronic session the May Crude Oil is currently trading at 2387 which is 63 points lower. The trading range has been 2465 to 2341.
On the natural gas front the April contract expires tomorrow so it is time to rollover to the May. In the overnight electronic session the May contract is currently trading at 1.702 which is .012 lower. The trading range has been 1.743 to 1.676. The weekly Natural Gas Storage is out today and the Thomson Reuters poll with 17 analysts participating estimate withdrawals ranging from 33bcf to 14bcf with the median 24bcf and the actual draw of 25bcf. This compares to the one-year build of 6bcf and the five-year average reduction of 19bcf.
Have a great Trading Day!