Big Grain Data Today. The Corn & Ethanol Report 11/08/19

We kickoff the day with Wholesale Trade and FED Brainard Speech at 7:30 A.M., Michigan Consumer Sentiment at 9:00 A.M., Crop Production USDA Supply/Demand and WASDE Report at 11:00 A.M., Baker Hughes Oil Rig Count at High Noon and Total Vehicle Sales at 6:55 P.M. And it is important to note that Vehicle Sales in China are slumping. On the Corn front yesterday’s Export Sales data was nothing special to support prices. Investors and traders are looking ahead to today’s Crop Production Supply/Demand and WASDE data which will be released at 11:00 A.M. In the overnight electronic session the December Corn is currently trading at 373 ¾ which is 1 ½ of a cent lower. The trading range has been 375 ¾ to 373 ¾. There are farmers still harvesting in the fields playing catch up before the weekend snows.

On the Ethanol front, U.S. producers, exasperated by the biofuels policy, are looking to expand sales to Mexico to make up the difference of poor sales. The U.S. Grain Council, the American Coalition for Ethanol and the Mexican Association of Service Station suppliers have been working with Mexican officials to host workshops in Mexico to promote use of 10% blend of Ethanol known as E-10. They are targeting Gas station owners, Petroleum equipment retailers, and state and federal Agriculture and Energy officials. There were no trades in the overnight electronic session. The December contract settled at 1.405. The market is currently showing 1 bid @ 1.383 and 2 offers @ 1.480 with declining Open Interest to 300 contracts. And as you can see there is a wide-spread between buyers and sellers.

On the Crude Oil front, Syria’s Oil Minister said the production unit in Banias refiner was damaged near the Mediterranean coast during maintenance operations. Also news out of the Middle East Iran said it shot down a drone violating Iranian airspace from a foreign country. The violating country in question has yet to be released and the U.S. confirmed all of their drones are accounted for. The market seems more concerned with follow-through on the tariff rollback in the U.S.-China trade war. In the overnight electronic session the December Crude Oil is currently trading at 5639 which is 76 points lower. The trading range has been 5713 to 5607.

On the Natural Gas front, we had a sell-off even after a bullish EIA Gas Storage number and colder than norm temperatures. It just could be investors already priced this in the market. But low and behold the market is higher today with weather forecast calling for the cold weather to be around for a while. The December contract is currently trading at 2.802 which is 3 cents higher. The trading range has been 2.822 to 2.755.

Have a Great Trading Day!
Dan Flynn