We kickoff the day with Export Sales, GDP (Q4-19) and Jobless Claims at 7:30 A.M., EIA Gas Storage at 9:30 A.M. and at 10:30 A.M. we have the 4 & 8-Week Bill Auction. News of the Coronavirus spreading like wildfire, now in India, and the markets once again are in panic mode. The Grains are taking it on the chin like the rest of the commodity markets except Cocoa, Coffee and the Metals. In the overnight electronic session the March Corn is currently trading at 380 ¾ which is 3 ½ cents lower. The trading range has been 385 to 379 ½.
On the Ethanol front output declines and stocks rise to a 26-week high. This is like a page out of the Natural Gas chapter. In the overnight electronic session the March Ethanol is currently trading at 1.369 which is .007 higher. The trading range has been 1.369 to 1.362 and the market is currently showing 1 bid @ 1.355 and 6 offers @ 1.365 with 17 contracts traded and Open Interest at 423 contracts.
On the Crude Oil front Speculators are a surmising product in the pipeline and fears of declines in demand in the futures. Well we our the Futures Markets and I believe that investors are trading both fear and greed at the same time. In the overnight electronic session the March Crude Oil is currently at 5198 which is 135 points lower. The trading range has been 5320 to 5192.
On the Natural Gas front we continue to trade on less demand and more product than we know how to utilize it. We have the weekly EIA Gas Storage data and the Thomson Reuters poll with 17 analysts participating expect withdrawals ranging from 212 bcf to 139 bcf with the actual 195 bcf. This compares to the one-year withdrawal of 228 bcf and the five-year average 143 bcf. In the overnight electronic session the March contract is currently trading at 1.835 which is 3 cents lower. The trading range has been 1.886 to 1.828.
Have A Great Trading Day!
Mr. Daniel Flynn is a trader and analyst with a strong background in the fundamental and technical analysis of Grain and Energy markets.
He started his career in the summer of 1981 as a runner on the Chicago Mercantile Exchange floor, shortly after graduating from Leo High School in Chicago. He learned the futures and options business from the ground up and has proved his commitment and ability to the industry ever since.
Dan’s daily newsletter, The Corn & Ethanol Report, gives a unique insight and perspective into these market sectors, covering various global issues that are the driving force and backbone of the commodity markets. Dan is regularly interviewed by global media outlets on his insights and forecasts.
Dan provides his customers with not only a thorough understanding of the markets and the issues surrounding them, but also how to approach daily risk management in the markets they trade.