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The Funds Step Out Again. The Corn & Ethanol Report 04/17/19


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We start off the day with Housing Starts & Permits at 7:30 A.M., EIA Energy Stocks at 9:30 A.M. and Dairy Product Sales at 2:00 P.M. In the Corn market the fundamentals are telling me we are on the verge of a raging bull market but the funds are having their way shorting the market and yesterdays light volume had them step on it a little harder. Elevators and farmers are not selling at these levels while funds yawn and continue to sell in this early downward spiral. It cannot last forever in this climate and the funds will have to liquidate sooner or later. Then you throw in the Wild Card play with weather and the U.S.-China trade talks that could come in fruition at anytime we will see a disorderly exit as people heading for the exits like there is a fire in the room. In the overnight electronic session the May Corn is currently trading at 358 ½ which is a ½ of a cent lower. The trading range has been 360 to 357 ¾.

On the Ethanol front the May contract posted a trade at 1.324 which is .001 higher. 4 contracts traded and Open Interest is at 637 contracts while the market is currently showing 2 bids @ 1.316 and 2 offers @ 1.325.

On the Crude Oil front the API data came out pretty much as expected with Crude stocks down 3.096 million barrels, Cushing down 1.561 million barrels, Gasoline stocks down 3.561 million barrels and somewhat of a needed surprise of builds in Distillates of 2.330 million barrels which could be due to the fact that the farmers are behind in plantings with weather and usage of Diesel is down. In the overnight electronic session the May Crude Oil is currently trading at 6439 which is 34 points lower. The trading range has been 6461 to 6413.

On the Natural Gas front the market continues to burn lower. In the overnight electronic session the May contract is currently trading at 2.542 which is 2 cents lower. The trading range has been 2.582 to 2.539. The market does look heavy this morning and I anticipate more selling before the closing bell.

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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