Commodity Boom This Year. The Corn & Ethanol Report 01/03/18

Today’s reports are Construction Spending and ISM Manufacturing Index at 9:00 A.M. followed by API Energy Stocks at 3:30 P.M. All eyes remain on how long this Arctic blast will last. The bitter pill we are all swallowing is threatening Winter Wheat with no snow coverage to keep the bitter cold from the ground. Live Cattle will be freezing in the field and could lower the heavy Placements we saw in the last Cattle on Feed report and the next report will be coming on January 26th. Also rails are affected not to freeze which is slowing deliveries and shipping in the New York Harbor is affecting deliveries of Home Heating Oil with cold on the East Coast from Maine to Florida.

On the Corn front the market is trying to gather legs as well with temperatures starting speculation of higher prices to come. Whispers are resonating that buyers can be found in the Cash market as we see breaks to the downside in the futures markets. In the overnight electronic session the March Corn is currently trading at 354 ¼ which is 1 cent higher. The trading range has been 354 ¾ to 352 ½.

On the Ethanol front the January contract expires tomorrow so you need to roll or liquidate today. The February contract posted a trade at 1.360 which is a ½ of a cent lower with 5 contracts traded. The Open Interest is at 1,619 contracts and the market is currently showing 1 bid @ 1.353 and 1 offer @ 1.359.

On the Crude Oil front there is just plenty of news to drive this market higher with tight supplies with OPEC production cuts, the brutal weather slowing production, and the cold weather slowing deliveries and possible sanctions on Iran. In the overnight electronic session the February contract is currently trading at 6085 which is 48 points higher. The trading range has been 6093 to 6028.

On the Natural Gas front the market easing off with the perception of plenty of supply that will be able to offset the Arctic blast , also the boost in Coal production under this administration. In the overnight electronic session the February contract is currently trading at 3.016 which is 4 cents lower. The trading range has been 3.056 to 2.985.

Have a Great Trading Day!
Dan Flynn
Questions? Ask Dan Flynn today at 312-264-4374

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