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 kickoff the day with Export Sales, Initial Jobless Claims (04/Dec), Jobless Claims 4-Week Average (DEC/04) and Continuing Jobless Claims (27/Nov) at 7:30 A.M., Wholesale Inventories MoM (Oct) at 9:00 A.M., EIA Gas Storage at 9:30 A.M., NY Fed Treasury Purchases 10 to 22.5 yrs. at 10:20 A.M., $-Week and 8-Week Bill Auction at 10:0 A.M., Crop Production USDA Supply/Demand and WASDE data at 11:00 A.M. and 30-Year Bond Auction at 12:00 P.M.
On the Corn Front this market is undervalued and is looking to todays grain reports to show the actual fair-value and reality. As we touched on yesterday the spreads in corn should turn, and today may be the start. In the overnight electronic session the March corn is currently trading at 586 ¾ which I a ½ of a cent lower. The trading range has been 589 to 585.
On the Ethanol Front Successful Farming’s Chuck Abbott reports the Biden administration said it would set the ethanol mandate at its highest level ever in 2022 and reject 65 requests for exemptions from the Renewable Fuel Standard (RFS). Welcome steps for biofuels backers, but they rebelled at companion proposals to retroactively set RFS for 2020 and this year below the maximum possible., “a Betrayal” of rural America. Said a Nebraska senator. There were no trades or open interest in the ethanol futures.
On the Crude Oil Front the market remains in a volatile chop. No longer energy independent we are at the whims of OPEC & OPEC+. If history repeats itself, which undoubtedly will, we will see more pain at the pump as we see the energy sector unstabilized which is bad news for the economy. In the overnight electronic session the January crude oil is currently trading at 7176 which is 60 points lower. The trading range has been 7334 to 7128.
On the Natural Gas Front the market is gearing up for the EIA Gas Storage data. The WSJ survey with 13 analysts, brokers and traders estimates range from draws of 35 bcf to 64 bcf. A 53 bcf fall from last week will mean gas stocks totaled 3.511 trillion cubic feet which is 9% lower than last year and 2.3% below the five-year average. In the overnight electronic session the January natural gas is currently trading at 3.832 which is 0,017 higher. The trading range has been 3.879 to 3.725.
Have A Great Trading Day!
Dan FlynnQuestions? Ask Dan Flynn today at 312-264-4374