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 (17/Dec), MBA Mortgage Refinance Index (17/Dec), MBA Purchase Index (17?DEC), MBA Mortgage Applications (17/Dec) and MBA 30-Year Mortgage Rate (17?Dec) at 6:00 A.M, Chicago Fed National Activity Index (Nov), GDP Price Index QoQ (Q3), GDP Growth Rate QoQ Final (Q3), GDP Sales QoQ (Q3) Final, PCE Prices QoQ Final (Q3). Real Consumer Spending QoQ Final (Q3), Core PCE Prices QoQ Final (Q3) and Corporate Profits QoQ (Q3) at 7:30 A.M., CB Consumer Confidence (Dec) and Existing Home Sales MoM & YoY at 9:00 A.M., EIA Energy Stocks at 9:30 A.M., and 5-Year TIPS Auction at 12:00 P.M.
On the Corn Front the market was higher in yesterday’s action, a welcome sight. Drier than normal weather in South Brazil and NW Argentina triggered new buying. This could be a game-changer as we continue to examine the weaker export market and inflation. Funds remain long, although they have been selling and/or liquidating the past week. But still carry a heavy long position. In the overnight electronic session the March corn is currently trading at 603 ½ which is 5 ¼ cents higher. The trading range has been 604 ½ to 597.
On the Ethanol Front the question remains, Will adding ethanol affect the engine and milage. The government will be looking to add more ethanol for gasoline to extend supply. There is still no trade or open interest in ethanol futures even with an active cash market.
On the Crude Oil Front the market is realizing inflation and dependency on foreign oil we thought was behind us five-tears ago. Yesterday’s API data showed draws in crude oil at -3.670M, build in Cushing of +1.272 and builds in gasoline +3.701 and draws in distillates at 0>849M. In the overnight electronic session the February crude oil is currently trading at 7112 which is unchanged. The trading range has been 7177 to 7080.
On the Natural Gas Front the market got a spike on cold weather. The so-called milder winter forecasted is starting to show it will be anything but that. In the overnight electronic session the January natural gas is currently trading at 4.019 which is 0.150 higher. The trading range has been 4.032 to 3.816.
Have A Great Trading Day!
Dan FlynnQuestions? Ask Dan Flynn today at 312-264-4374