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Pandemic Fears Continue. The Corn & Ethanol Report 02/10/2020


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We kickoff the day with Fed Bowman Speech at 7:15 A.M., Consumer Inflation Expectations (Jan) and Export Inspections at 10:00 A.M., 3 & 6-Month Bill auction at 10:30 A.M., U.S. Budget Plan Fiscal Year 2021 and Fed Harker Speech at 2:15 P.M. On the Corn front it looks like we are seeing longs take profits ahead of tomorrows Crop Production USDA Supply/Demand data. Traders are pondering less acreage than originally thought, but the big headline is the impact of the coronavirus and what lasting impact will play out in the future. In the overnight electronic session the March Corn is currently trading at 379 ½ which is 4 cents lower. The trading range has been 383 ½ to 379.

On the Ethanol front Chinese buyers are looking to purchase prompt Industrial Grade Ethanol for medical purposes and ship it back to China, according to trading sources in Viet Nam and Singapore said over the weekend. Supplies of Industrial Ethanol are tight in Viet Nam at the moment. Thailand is another option of this commodity, but with prices trading at or above $900/ m/t and the cost for shipping is making the situation even more difficult as demand for prompt cargoes in less than a month and the uncertainty of how long these supplies will be needed. This information was supplied by Donavin Lim with Platt’s. In the overnight electronic session the March ethanol is currently trading at 1.340 which is unchanged. The trading range has been 1.342 to 1.340. The market is currently showing 1 bid @ 1.328 and 2 offers @ 1.343 with 3 trades changing hands and Open Interest at 315 contracts.

On the Crude Oil front the OPEC+ meeting has been delayed until March. Libya is the main focus because they are not on board with 600K barrels a day cut at the moment. This news has the market in teeter-totter mode. In the overnight electronic session the March Crude Oil is currently trading at 4997 which is 35 points lower. The trading range has been 5049 to 4956.

On the Natural gas front the bears are in firm control as the second half of winter is beginning with mild conditions. In the overnight electronic session the March Natural Gas is currently trading at 1.783 which is 7 ½ cents lower. The trading range has been 1.813 to 1.776.

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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