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Turnaround Tuesday in Crude Oil and Products. The Corn & Ethanol Report 01/14/2020


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We started off the day with NFIB Business Optimism Index at 5:00 A.M. which came out at 102.7 versus the forecast of 104 and previous 104.7. We have CPI and Real Earnings at 7:30 A.M., Redbook at 7:55 A.M., Fed Williams Speech at 8:00 A.M., IBD/TIPP Economic Optimism at 9:00 A.M., API Energy Stocks at 3:30 P.M. and talk that there will be some ceremony of the U.S.-China Phase 1 Seal signature ahead of tomorrow. On the Corn front we have the market is trading a tad higher at 390 which is a ½ of a cent. The technical number we would like to close above is 391 ½ to 392. The overnight trading range has been 390 ½ to 388 ¼. The market is looking to positives after Friday’s USDA estimates and the upbeat feeling with U.S.-China Trade Deal Phase 1 becoming a reality.

On the Ethanol front the American Coalition for Ethanol (ACE) has appointed Nick Fosheim, former executive director of South Dakota’s Lincoln and Minnehaha County Economic Development Associations, to serve as director of member and industry relations. Nick joins the coalition at an interesting time as we look favorably to the export market in this industry. In the overnight electronic session the March Natural Gas is currently trading at 1.362 which is .020 lower. The trading range has been 1.366 to 1.362. The market is currently showing 2 bids @ 1.365 and 1 offer @ 1.398 with 27 contracts changing hands and Open Interest climbing to 233 contracts.

On the Crude Oil front the market seemed to overplay its hand yesterday. We still have Iranian risk in the market but at a lower level since we killed their general. Europe is threatening to put on sanctions after the Iranians shot down a commercial air-liner. We also have the API Energy Stocks today. And we may have a surprise and inaccurate number which is the norm when we have disruptions in the Houston Shipping Channel like we did the last week with fog disrupting imports and exports. Also, another bullish sign could be China importing U.S. Energy once we start gaining traction in Phase 2 of the deal. In the overnight electronic session the February Crude Oil is currently trading at 5862 which is 54 p[points higher.  The trading range has been 5872 to 5772.

On the Natural Gas front the market is trading higher with news of an Arctic front swooping down in the weather forecast that is a little late but still better news for producers. The February Natural Gas is currently trading at 2.227 which is 4 cents higher. The trading range has been 2.225 to 2.174.

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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