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 Unemployment and Wholesale Trade at 7:30 A.M., NY Fed Treasury Purchases 0 to 2.25 yrs. at 9:30 A.M., Baker Hughes Oil & Total Rig Count at 12:00 P.M.M.
On the Corn Front we ended up higher in yesterday’s trade. I am to gun shy to ask if the lows are in, however, doing the math on fundamental factors leads me to believe this will once again be volatile and prices will move higher. The reasoning? Very simple. Carryover is at the lowest point I can remember. South America is limited on their exports and U.S. corn is the cheapest in the world. If the dollar can balance out this market is ready for a tear. Buckle Up Your Chinstrap for Tuesday’s WASDE data. In the overnight electronic session, the December corn is currently trading at 537 ¾ which is 3 ¾ cents higher. The trading range has been 538 ¾ to 533.
On the Ethanol Front news and headline have been put on hold as the government decides deal or no deal on the infrastructure deal. This is expected to linger until December until they worked the votes. The Futures market once again had no trades or Open Interest.
On the Crude Oil Front the disappointing numbers on jobs bear the fact that this is not your Trump economy. Once energy independent and now relying and begging OPEC for supply. The current administration gave us the cease production in Anwar and the Keystone Pipeline which cost Americans jobs to boot. No wonder this market is ready to cave in and not crumble. In the overnight electronic session, the November crude oil is currently trading at 7931 which is 101 points higher. The trading range has been 7966 to 7863.
On the Natural Gas Front yesterday’s bearish EIA number had the weak longs heading for the exits. With a cold winter forecasted and global supplies thin, this market will eventually rock and take off like a rocket. In the overnight electronic session, the November natural gas is currently trading at 5.660 which is .017 lower. The trading range has been 5.876 to 5.582.
Have A Great Trading Day!