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
There have been discussions on whether Russia invades the Ukraine today? The markets are playing risk on-risk off until the Russian troops get back to their home base.
We start off the day with MBA Mortgage Market Index (11/Feb), MBA Mortgage Refinance Index (11/Feb) MBA Purchase Index (11/Feb), MBA Mortgage Applications (11/Feb) and MBA 30-Year Mortgage Rate at 6:00 A.M. Retail Sales MoM (Jan), Retail Sales Ex Gas-Autos MoM (Jan), Import and Export Prices MoM & YoY (jan at 7;30 A.M., Industrial Production MoM & YoY (Jan), Manufacturing production MoM & YoY (Jan) and Capacity Utilization (Jan) at 8:15 A.M. Business Inventories, NAHB Housing Market Index (Feb) and Retail Inventories Ex Autos MoM (Dec) at 9:00 A.M., EIA Energy stocks at 9:30 A.M., 20-Year Bond Auction at 12:00 P.M., FOMVC Minutes at 1:00 P.M., and Dairy Products Sales at 2:00 P.M.
On the Corn front the market took an old-fashioned beating in yesterdays action. The long liquidation started on Russia’s risk on risk of play and also lack of evidence of South America’s supplies. The market tried to steady the ship in the overnight session while we hope for better export numbers tomorrow and sort out demand and transportation issues. The March corn is currently trading at 639 ¾ which is 1 ¾ of a cent higher. The trading range has been 643 ¼ to 636 ¼.
On the Ethanol Front the only talk at the moment is a new study that put bioenergy at a crossroads. Are they now in the rearview mirror as the study said gasoline was safer than ethanol blends. There will be plenty of talk on this issue and we will keep you posted in the coming days. There were no trades or open interest in the ethanol futures.
On the Crude Oil Front after yesterdays huge break the API Energy Stocks showed draws across the board with crude down -1.076M, distillates -0.546M, gasoline -0.923M and Cushing -2.382. This market is wary if the Russians do follow the plan of an exodus. I am still not sure with the bone-chilling fact is Putin wants some sort of concession for leaving as he has a big stake in OPEC+ and supplies natural gas to Germany. This is just another sign that Energy Independence and National Security should work hand in hand. And this is a huge National security issue. In the overnight electronic session the March crude oil is currently trading at 9338 which is 131 points higher. The trading range has been 4.623 to 4.370.
On the Natural gas Front we will be having another splash of winter across the Plains and Midwest which will start as rain then sleet and then heavy snow with the mercury dropping has this market rolling this morning. In the overnight electronic session the March natural Gas is currently trading at 4.567 which is 0.260 higher. The trading range has been 4.623 to 4.370.
Have A Great Trading Day!
Dan FlynnQuestions? Ask Dan Flynn today at 312-264-4374