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Stock Market Rolling No Correction Yet. The Corn & Ethanol Report 02/06/2020


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The Challenger Job Cuts for January came in at 67.735 thousand verses the December 32.843 thousand at 6:30 A.M. At 7:30 we have Export Sales and Jobless Claims, Fed Kaplan Speech at 8:15 A.M., EIA Gas storage at 9:30 A.M. 4&8-Week Bill Auction at 10:30 A.M. and finally Fed Quarles Speech at 6:15 P.M. On the Corn front the Export Sales were on the higher side of expectations which is a good sign heading into the 2020 growing season. More purchases and revenue will keep the market and republic moving to seek higher highs. Of course we will be watching Mother Nature and it seems the weather forecast changed to cooler temps in the Plains and Mid-West. We do know spring is right around the corner. In the overnight electronic session the March Corn is currently trading at 380 which is ¾ of a cent lower. The trading range has been 381 ¾ to 379.

On the Ethanol front the University of Central Florida researchers are trying to narrow the field of cleaner-burning renewable fuels that will have potential benefits with cleaner emissions. I will keep you posted on their progress. There were no trades posted in the overnight electronic session. The March Ethanol settled at 1.352. The market is currently showing 1 bid @ 1.342 and 1 offer @ 1.354 with declining Open Interest at 356 contracts.

On the Crude oil front Russia continues to play possum with OPEC production cuts. The Saudi’s definitely want to have the cuts in place to keep Saudi Aramco shares stable now as the company is publicly traded. In the overnight electronic session the March Crude Oil is currently trading at 5027 which is 48 points lower and dropping like a knife at the moment. The trading range has been 5220 to 5024. This volatility should keep the VIX index hopping as well.

On the Natural gas front the market is still digesting a slow winter and we have the EIA Gas Storage data this morning. The Thomson Reuters poll with 17 analyst participating estimate withdrawals ranging from 156 bcf to 120 bcf with the median 131 bcf and the actual guessing number at 129 bcf. In the overnight electronic session the March Natural Gas is currently trading at 1.841 which is 2 cents lower. The trading range has been 1.898 to 1.832.

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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