Daniel Flynn
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
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Crazy Markets. The Corn & Ethanol Report 12/08/2021
We start off the day with Total Vehicle Sales (Nov), MBA Mortgage Market Index (o3/Dec), MBA Mortgage Applications (03/Dec), MBA Mortgage Refinance Index (03/Dec), and MBA 30-Year Mortgage Rate (03/Dec) at 6:00 A.M., JOLT’s Job Openings (Oct) and JOLT’s Job Quits (Oct) at 9:00 A.M., EIA Energy Stocks at 9:30 A.M., 10-Year Note Auction at 12:00 P.M. and Dairy Product Sales at 2:00 P.M.
On the Corn Front the futures ended up higher in yesterday’s action. AGWEB reports that spreads in corn may suggest corn is undervalued and need to trade AT $6. Usually, the corn market at this time of year is in a carry market, meaning futures values are higher in later months versus the current months with the market is in a carry. There is incentive for those with storage capacity to hold grain for later use. In the overnight electronic session the March Corn is currently trading at 584 ¾ which is 1 ½ of a cent lower. The trading range has been 585 ¼ to 584 ½.
On the Ethanol Front the market pushed corn higher after the EPA released ethanol mandates. There is also talk the EPA may reject a significant number of refinery waivers, and the USDA will announce $100 million for biofuel infrastructure aid. There is currently zero open interest in ethanol futures.
On the Crude Oil Front the API data showed draws in crude -3.089M with builds in Cushing, Oklahoma at +2.395M and builds in products, gasoline +3.705M and distillates +1.1.228M. We will see if the EIA data is in the same ballpark this morning. In the overnight electronic session the January crude oil is currently trading at 7217 which is 1`2 points higher. The trading range has been 7279 to 7091.
On the Natural Gas Front we have had shrinking natural gas prices which could be a sign of hope for household winter heating bills. But the futures changed gears in last nights action. In the overnight electronic session the January natural gas is currently trading at 3.862 which is 0.154 higher. The trading range has been 3.931 to 3.723.
Have A Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374Dan Flynn