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 MBA Mortgage Applications (12/FEB) MBA 30-Year Mortgage Rate (12/Feb) at 6:00 A.M., Retail Sales, and PPI at 7:30 A.M., Redbook at 7:55 A.M., Fed Barkin Speech at 8:00 A.M., Industrial Production, Manufacturing Production and Capacity Utilization at 8:15 A.M., Business Inventories Fed Rosengren Speech, and NAHB Hosing Market Index at 9:00 A.M., 105-Day and 154-Dat Bill Auction at 10:30 A.M., 20-Year Note Auction at 12:00 P.M., FOMC Minutes at 1:00 P.M., Dairy Product Sales at 2:00 P.M., API Energy Stocks at 3:30 P.M. and Fed Kaplan Speech at 5:05 P.M.
On the Corn Front the market ended up higher in yesterday’s trading session with good exports leading the bullish fundamental news and very good demand for U.S. corn. The Brazilian market is fighting dry weather and the cold snap in this country fueled demand for corn feed. Animals tend to lose weight in these conditions. I am anticipating a good number on Friday’s export sales number. In the overnight electronic session, the March corn is currently trading at 551 ¼ which is 1 cent lower. The trading range has been 554 ¾ to 549.
On the Ethanol Oil Front the market is eerily quiet as the biofuels and new administration cozy up to have a plan they can work together with. Traders still wondering with the interest China has to buy this market and do step in. What type of volumes are they willing to tender? That could get this market moving. There were no trades in the overnight electronic session. The April ethanol settled at 1.729 and no market posted with Open Interest at 45 contracts.
On the Crude Oil Front Pandora’s Box is open. As the lower 48 was hit by winter storms just proving why KEYSTONE XL is so important. Just send product down the pipeline and limit the transportation in these unsafe elements. In the overnight electronic session, the March crude oil is currently trading at 6126 to 5951.
On the Natural Gas Front the market most likely will be driven by the next or latest weather headline that will add volatility. In the overnight electronic session, the March natural gas is currently trading at 3.113 which is .016 lower. The trading range has been 3.162 to 3.049.
Have A Great Trading Day!