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 U.S. Fed National Activity Index (OCT) ay 7:30 A.M., Markit Composite PMI Flash (NOV), Markit Manufacturing PMI Flash (NOV), and Markit Services PMI Flash (NOV) at 8:45 A.M., Export Inspections at 10:00 A.M., 2-Year Note and g-Month Bill Auction at 10:30 A.M., Fed Daly Speech, 3-Month Bill and 5-Year Note Auction at 12:00 P.M., Cold Storage Report and Fed Evans Speech at 2:00 P.M., and Crop Progress at 3:00 P.M.
On the Hurricane Front a Disturbance did pop up over the western Atlantic, generally between Bermuda and the Bahamas. It could briefly acquire subtropical characteristics while it moves northwestward during the next day or two before it merges with a cold front. The system may have a second opportunity to develop subtropical characteristics if it becomes separated from the front and meanders over the central Atlantic.
On the Corn Front we are closing in on First Notice Day on all December contracts next Monday. This Thanksgiving week may be an interesting one at that with the export market. As we close in on the last of harvesting funds and speculators have maintained heavily bullish bets on corn and soybeans. The supply picture grew even higher than anyone expected, and other market participants have been active lately, joining the overall optimism. As of November 17, managed money corn futures and options were net long 278,889 contracts, a decrease of less than 2,000 contracts from a week ago. Corn futures fell fractionally during the week, but heavier corn selling was expected. According to the USDA 96& of the corn has been harvested, which is 82% ahead of last year and 88% on the five-year average. And we are expecting more export sales even though the number will be delayed until Friday due to the Thanksgiving holiday. I do expect plenty of purchase orders for U.S. agricultural products. In the overnight electronic session, the December corn is currently trading at 428 ½ which is 5 ¼ cents higher. The trading range has been 429 ¾ to 427.
On the Ethanol Front MarketWatch gave a press release for Ethyl Alcohol (Ethanol) market trend with top countries data 2020 industry trends, share, size, demand, growth opportunities, industry revenue, future business analysis by forecast 2024. The report focuses on the global market especially in the U.S., Europe, China, Japan, South Korea, North America, and India. This should map out the road of what to expect in this growing industry the next few years. There were no trades posted in the overnight electronic session. The December contract settled at 1.390 and is currently showing 2 bids @ 1.320 and 0 offers resting with Open Interest at 32 contracts.
On the Crude Oil the market moved higher after starting close to unchanged in last night’s action. But as more positive vaccine news started the markets in drive again. And it was a reminder to investors that Joe Biden said we must endure a Dark Winter. Well, if the vaccines pay off Americans will not be locked down and will be going mobile which will be awesome for many industries across the board. As in our history of being a Great Nation American’s always seemed to find a way to rise to the occasion. Other good sentiment in the market was whispers OPEC and OPEC+ will keep crude output in check. In the overnight electronic session, the January crude oil is currently trading at 4291 which is 49 points higher. The trading range has been4336 to 4229.
On the Natural Gas Front a Utility’s application for natural gas infrastructure repairs was approved. The Michigan Public Services Commission approved Consumer’s Energy’s to build a wider natural gas pipeline. The new Mid-Michigan Pipeline will be 36-inch (91-centimeter) and would replace an existing, 20-inch (50-centimeter) line between Ovid. North of Lansing and Chelsea, west of Ann Arbor. It is expected from 2023 to 2024 at an estimated cost of $550 million. The Jackson based utility said the existing line is over 70 years old and replacing it would increase the overall system resilience and remove a gas-supply bottleneck in the smaller pipeline. In the overnight electronic session, the December natural gas is currently trading at 2.696 which is .046 higher. The trading range has been 2.723 to 2.677.
Have a Great Trading Day!