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The Corn & Ethanol ReportDaniel Flynn
The Corn & Ethanol Report 10/15/18
First Sight of Snow Seen
There were sightings of snow in the area that snowflakes did melt on impact with the ground but snows in Amarillo, to Iowa and last week's snow we saw in the Plains. On the Corn front frost and snow before harvest completion always raises an eyebrow. Most of Friday's higher action was mostly pegged to the USDA lowering the Corn yield and did not raise the carryout with whispers abound storage fears this early. And now with cooler than normal temperatures which could lead to some new buying coming into the market. In the overnight electronic session the December Corn is currently trading at 373 which is 3/4 of a cent lower. The trading range has been 373 1/2 to 371 3/4.
On the Ethanol front the first 3 months of the futures contracts had activity in the overnight electronic session with saw some actions as investors are jockeying into positions like horse going to the gate before a race. They will want to cash in on this Export market. In the overnight electronic session the November contract is currently trading at 1.315 which is .006 higher. The trading range has been 1.315 to 1.309. 12 contracts traded and the market is currently showing 1 bid @ 1.308 and 1 offer @ 1.311 and Open Interest at 1,523 contracts.
On the Crude Oil front the Trumpenomics are at it again. When asked by Leslie Stahl with 60 Minutes if he would punish Saudi Arabia by cutting the Defense order over the missing journalist Jamal Khashoggi. President Trump responded that he is not going to penalize Boeing and other defense companies He is sending Secretary of State Mike Pompeo to meet with the Saudi king to get to the bottom of this. Could more global oil be taken off the market? The President did not say what sanctions would come into play but if the Kingdom is responsible we have other sanctions and punishment we can apply. In the overnight electronic session the November Crude Oil is currently trading at 7086 which is 48 points lower. The trading range has been 7270 to 7085.
On the Natural Gas front the market seems to now be trading off of cooler than normal temperatures. This market bias of mine has been changing with the winds, It has been a difficult market to call consistently right. Therefore, today I am on the sidelines. In the overnight electronic session the November Natural Gas is currently trading at 3.231 which is 7 cents higher. The trading range has been 3.273 to 3.177.
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