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 Market Index (05/Nov), MBA Mortgage Refinance Index (05/Nov), MBA Purchase Index (05/Nov), MBA Mortgage Applications (05/Nov) and MBA 30-Year Mortgage Rate (05/Nov) at 6:00 A.M., CPI, Jobless Claims, Real Earnings and Wholesale Trade at 7:30 A.M., NY Fed Treasury Purchases 7 to 10 yrs. at 8:30 A.M., EIA Energy Stocks at 9:30 A.M., 4-Week & 8-Week Bill Auction at 10:30 A.M., EIA Natural Gas Storage at 11:00 A.M., 30-Year Bond Auction at 12:00 P.M., Monthly Budget Statement (Oct) at 1:00 P.M. and Dairy Product Sales at 2:00 P.M.
On the Corn Front the USDA dropped the U.S. soybean crop and the market shot up like a rocket. This supported corn, even though the report showed higher yields in corn. In the overnight electronic session the December corn is currently trading at 557 ½ which is 2 ¾ cents higher. The trading range has been 560 ¾ to 555.
On the Ethanol Front prices have climbed since drivers have hit the road. While the Indian government approves an ethanol price hike up to Rs 1.47/ltr. For motor gas. We still have 0% open interest.
On the Crude Oil Front last night’s API’s showed draws in crude -2.500M, gasoline down -4.500M and distillates -2.500M. This mornings EIA data should be interesting. In the overnight electronic session the December crude oil is currently trading at 8390 which is 25 points lower. The trading range has been 8497 to 8330.
On the Natural Gas Front we await the EIA Natural Gas Storage. The market has been getting pounded with news the Russians are finally moving more natural gas. The Thomson Reuters poll, with 12 analysts participating, estimate builds from 3 bcf to 15 bcf with the median 10 bcf. This compares to the one-year injection of 28 bcf and the five-year average withdrawal of 12 bcf. In the overnight electronic session the December natural gas is currently trading at 4.813 which is 0.166 lower. The trading range has been 5.046 to 4.772.
Have A Great Trading Day!