Texas Cold Snap With Gas and OIL in Demand. The Corn & Ethanol Report 02/16/2021

We start off the day with MY Empire State Manufacturing Index at 7:30 A.M., Exports Inspections at 10:00 A.M., Fed Bowman Speech at 10:10 A.M., 3-Month and 6-Month Bill Auction at 10:30 A.M., NOPA Crush at 11:00 A.M.,119-Day and 42-Day Bill Auction at 12:00 P.M., Overall Net Capital Flows (DEC), Foreign Bond Investment (DEC) and Net Long-Term Tic Flows at 3:00 P..

On the Corn Front the market traded lower in Friday’s action following a somewhat disappointing USDA report and lack of fresh bullish headlines that has been feeding the bull. This week we are starting off higher as traders seek to buy new fair value. Fundamentals remain strong and we should see another fresh headline with Export Intentions and NOPA Crush today. And of course, we will be monitoring China purchases and weather and crop conditions in South America. In the overnight electronic session, the March corn is currently trading at 544 ¾ which is 6 cents higher. The trading has been 551 ¼ to 542 ½.

On the Ethanol Front this market may be ready for a run. With corn and crude oil trading higher with no end in sight, China may step into corn and ethanol purchases which should create boom effect with foreign demand buying are product relatively cheaply. For now! The markets may just continue higher with bullish fundamentals of supply/demand keeps showing us. There were no trades posted in the overnight electronic session the April contract settled at 1.729 and currently showing no market with Open Interest at 43 contracts.

On Crude Oil Front prices pushed near to 13-month highs. Gains topped out as Norway averted a supply disruption with a wage deal. Getting back to weather and tomorrows API Energy Stocks were expecting some bullish overtone. We should also see disruptions with temperatures in the lower 48 has cooled the supply chain. This is a good time to remind you when you need to pressure the power grid it is nice to know natural gas could supply the power needed and solar and wind power coming to bat. In the overnight electronic session, the March crude oil is currently trading at 5966 which is 19 points higher. The trading range has been 6095 to 5957.

On the Natural Gas Front the spot March contract is rolling with demand is blowing through the roof with this winter storm effecting parts in the south that may happen in a generation or two. This will be not peaking demand, but product will flow. In the overnight electronic session, the March natural gas is currently trading at 3.075 which is .0163 higher. The trading range has been 3.109 to 2.976.

Have A Great Trading Day!
Dan Flynn

Questions? Ask Dan Flynn today at 312-264-4374