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 MBA Mortgage Market Index (04/Mar), MBA Mortgage Refinance Index (04/Mar), MBA Purchase Index (04/Mar) MBA Mortgage Applications (04/Mar) and MBA 30-Year Mortgage Rate (04?Mar) at 6:00 A.M., Jolts Job Openings (Jan) and Jolts Job Quits (Jan) at 9:00 A.M. EIA Energy Stocks and NY Fed Treasury Purchases 2.25 to 4.5 yrs. at 9:30 A.M., Crop Production USDA Supply/Demand and WASDE at 11:00 A.M., 10-Year Note Auction at 12:00 P.M., and Dairy Products Sales at 2:00 P.M.
On the Corn Front the futures ended up higher in the May settling at 753. We had a long liquidation as traders square up before today’s report. The war is making the market edgy as we are in the second week of hostilities. We have a smaller South American crop and we love to see the timing of a resumption in Black Sea exports. In the overnight electronic session the May corn is currently trading at 745 which is 8 cents lower. The trading range has been 759 ½ to 741 ½.
On the Ethanol Front the Chairman of the Nebraska Ethanol Board spoke on how ethanol can help as gas prices rise. I expect a further similar outpouring from the ethanol industry. The politicians are now desperate as the country remembers energy independence and wants fast results to cure the pain at the pump. There were no trades or open interest in ethanol futures.
On the Crude Oil Front we continue to rock & roll with as the market gets a headline and off it goes with huge trading ranges. With this war we need to know will the Fed raise rates at the March 16th meeting?
Truckers making headlines demanding and end to Covid restrictions and the reopening of Keystone Pipeline XL. Sounds pretty obvious and normal request. Let’s not forget they kept food to mouth as they kept rolling product at height of the pandemic. It would be the least the government can and should do. Analyst seemed divided on builds or withdraws. Last nights API showed builds in crude +2.811M, while we had draws in Cushing -0.367M, gasoline -1.988M and distillates -5.485M.Another crushing blow to truckers and diesel users. In the overnight electronic session the April crude oil is currently trading at 11749 which is 620 points lower. The trading range has been 12680 to 11551.
On the Natural Gas Front the market is pulling back a little bit. It has found some fundamental support with winter forecasted to give another winter punch. In the overnight electronic session the April natural gas is currently trading at 4.484 which is 0.043 lower. The trading range has been 4.625 to 4.450.
Have A Great Trading Day!
Dan FlynnQuestions? Ask Dan Flynn today at 312-264-4374