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Just When you Thought it was Safe to Go Back in the Water. The Corn & Ethanol Report 12/06/18


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U.S. Stocks and Futures took a hit in the overnight as anxiety of a possible slowdown and the murkiness of trade relations with China after Huawei Chief Financial Officer was arrested in Vancouver and faces extradition to the U.S. This coupled with timing changes of economic reports regularly scheduled in respect for the life of President George Herbert Walker Bush. We will have Jobless Claims ahead of tomorrows Unemployment data. But the markets focus seems to be on Meng Wanzhou the CFO of one of the largest mobile phone makers in the world. This could seriously impact U.S.-Sino trade talks as whispers of gloom and doom seekers see another high-tech espionage story.

On the Corn front the market is not moving much but is trading lower with the rest of the Grain complex as a surprising lower U.S. dollar and sinking commodity prices don’t add up with the normal cause and effect with trade fears on the table for now. In the overnight electronic session the March Corn is currently trading at 383 which is 1 ¼ of a cent lower. The trading range has been 384 ¾ to 382 ¾.

On the Ethanol front the January contract is currently trading at 1.260 which is .007 lower. The market is currently showing 1 bid @ 1.257 and 1 offer @ 1.262. The trading range has been 1.263 to 1.260 with 7 contracts traded and Open Interest at 1,845 contracts.

On the Crude Oil front we are experiencing the OPEC’s version of Texas Hold”Em as they will announce and define what production cuts they are willing to do, or do certain members of the cartel have a card up their sleeve. Russia has the least to lose out of all OPEC and Non-OPEC nations and they are prancing around like the prom queen but they will be vulnerable to their profit center if the market continues to tank so at the end of the day I expect Putin to be on board. In the overnight electronic session the January Crude Oil is currently trading 5134 which is 155 points lower. The trading range has been 5330 to 5023. What a roller coaster of a range already!

On the Natural Gas front it could not sustain the las two days of big swings to the upside as the market teeter-tawter like a pendulum with heavy moves. This market is feeling the fears of U.S.-Sino negotiations and awaits the next headline. In the overnight electronic session the January Natural Gas is currently trading at 4.364 which is 10 ½ cents lower. The trading range has been 4.489 to 4.339.

Have a Great Trading Day!
Dan Flynn

 

 

 



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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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