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Grains on a Collision Course. The Corn & Ethanol Report 11/29/17


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This morning we kickoff the day with 3rd Quarter GDP at 7:30 A.M., EIA Energy Stocks at 9:30 A.M. and Dairy Product Sales at 2:00 P.M. In yesterday’s action the Grains looked sick not being able to muster any type of a rally. It is hard to take a new position with limited downside on this oversold market but when do we become value seekers at these levels. And I have an uncomfortable feeling the bottom is not in just yet. In the long-term the market looks like a golden buy but how long do you want to be in this trade and are your pockets deep enough, can you buy and hold while the market continues to show vulnerabilities. In the overnight electronic session the December Corn is currently trading at 336 ¾ which is a ½ of a cent higher. The trading range has been 337 to 335 ½. Tomorrow is First Notice Day on all December Grain contracts so we will shift our focus to the March contracts.

On the Ethanol front the January contract is leading the way in the Open Interest category with 1,207 contracts open. And the 10 contracts traded in the overnight electronic session with the last price at 1.363 which is .001 of a cent  higher. The trading range has been 1.364 to 1.355.

On the Crude Oil front the market is catching a breath after last night’s surprise API data. As skewed as the numbers were on Crude Oil this morning’s EIA Energy Stocks may trump last nights inventories. At the end of the day we have bullish fundamentals with OPEC production cuts in line, with growing demand and emerging markets on the rise. In the overnight electronic session the January Crude Oil is currently trading at 5770 which is 29 points lower. The trading range has been 5793 to 5746.

On the Natural Gas front the market is trading on being oversold and cold weather reports which will be the two reasons this market will trade higher and at the moment the market looks to continue the drive to higher prices. In the overnight electronic session the December Natural Gas is currently trading at 3.213 which is 8 ½ cents higher. The trading range has been 3.213 to 3.127.

Have a Great Trading Day!
Dan Flynn

 

Questions? Ask Dan Flynn today at 312-264-4374

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About the author


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.

Contact Daniel Flynn: (800) 769-7021 or at dflynn@pricegroup.com

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