The Corn & Ethanol ReportDaniel Flynn
The Corn & Ethanol Report 8/23/19
Harvest Moon or Hunters Moon
We kickoff the day with New Home Sales at 9:00 A.M. and Cattle On Feed at 2:00 P.M. The Pro Farmer Tour continues to trump the USDA data. I have news for the USDA put your own boots on the ground and see for your self before you release data. If your numbers were wrong due to a government shutdown because the swamp would not give in to making a healthy robust economy work and you attempt to correct numbers that were already wrong causing more unjust damage to farmers. I have a novel approach, dust off the chalkboard and start from scratch just like the farmers endured replanting in a late planting season. On the Corn front in the overnight electronic session the December Corn is taking a beating again down 4 cents at 367. The trading range has been 371 1/2 to 366 3/4. Pushing contract LOWS! Really?
On the Ethanol front we are seeing some action from President Trump like we saw the growth in the GDP in his first two years in office unlike his predecessor failed to accomplish just once in his eight years in office. Trump met with Secretary of Agriculture Sonny Perdue and EPA Administrator Andrew Wheeler to find a happy median to the waivers granted on 31 small refineries either reversed or find common ground to make the Corn Lobby, Ethanol Producers and Oil Companies on the same page. In the overnight electronic session there were no trades posted. The October contract settled at 1.339 with the market currently showing 4 bids @ 1.314 and 5 offers @ 1.359 with growing Open Interest at 429 contracts.
On the Crude Oil front new Chinese tariffs on U.S. goods sunk the Oil market in the early stage of the game. Once again the market overreacted and the Algorithm computer day traders had a field day selling into this headline. Remember Oil is a fungible commodity and will be bought somewhere somehow. And that is a fact not a fairytale. In the overnight electronic session the October Crude Oil is currently trading at 5380 which is 155 points lower. The trading range has been 5560 to 5340.
On the Natural Gas front the market is still in drydock until the fossil fuel deniers go away and stop raising our taxes. Yesterday's EIA Gas Storage was pretty much inline but leaning to the bearish side of expectations. In the overnight electronic session the September Natural Gas is currently trading at 2.124 which is 3 1/2 cents lower. The trading range has been 2.160 to 2.120.
Jerome Powell is going to speak at 9:00 A.M. to make sense out of the FED Minutes.
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August 23rd, 2019
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