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 start off the day with Redbook at 7:55 A.M., S&P/Case-Shiller Home Price YoY & MoM at 8;00 A.M., Chicago PMI at 8:45 A.m., Consumer Confidence at 9:00 A.m., Grain Stocks and Prospective Plantings at 11:00 A.M. and API Energy Stocks at 3:30 P.M.
On the Corn front the market took some pressure with funds in long liquidation mode for Corn and short-covering for Soybeans. And while the Corn closed a bit lower the close on the Soybeans was not so impressive given the numbers I thought the funds were short. We will get a closer look as to what the farmer is thinking in the early going with the China trade deal and the coronavirus chaos with Planting Intentions. In the overnight electronic session the May Corn is currently trading at 340 ¼ which is 1 cents lower. The trading range has been 342 ½ to 340.
On the ethanol front Brazilian Fuel distributors declared Force Majeure on Ethanol due to fuel consumption dropping 50% in just one week. This will be another interesting spin with Planting Intentions on Corn and if this price war continues and in turn affect other commodities. There were no trades posted in the overnight electronic session. The May contract settled at 0.964 and is currently showing another wide-spread with 2 contracts bid @ 0.930 and 1 contact offered @ 1.000 with Open Interest at 270 contracts.
On the Crude Oil front the Trump Putin conversation seemed to go well and the Oil markets responded. The two agreed to work with coronavirus and Oil through the G20. Moscow is saying not so much on Oil but we will be working together and they do hope the U.S. will lighten sanctions. In the overnight electronic session the May Crude Oil is currently trading at 2093 which is 84 points higher. The trading range has been 2189 to 2023. We also have Last Trading Day on April R-BOB and Heating Oil.
On the Natural Gas front the market seems to be on the quiet and turning the tables to be in the green matching the Crude and Products. In the overnight electronic session the May contract is currently trading at 1.700 which is 1 cent higher. The trading Range has been 1.731 to 1.681.
Have a Great Trading Day!