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The Corn & Ethanol Report

Daniel Flynn

The Corn & Ethanol Report 02/22/19

Trump Meeting with China Trade Chief Today

Good Morning!

President Donald Trump is meeting with Vice Premier Liu as the private talks are signaling optimism for the two to meet one on one once again. These talks may strike a deal with the two economic rivals before the March 1st deadline in which Washington would impose more than double the tariffs on Chinese imports. Today is Washington's Birthday and on this Friday we have the daily reports with Export Sales at 7:30 A.M., Cattle on Feed, Cold Storage & Annual Report at 2:00 P.M. On the Corn front the market continues to trade in the green as we wait in anticipation of good news coming out of the latest round of trade talks. In the overnight electronic session the March Corn is currently trading at 377 which is 1 1/2 of a cent higher. The trading range has been 377 1/4 to 374 1/2.

On the Ethanol front the April contract posted a trade at 1.364 which is .002 higher. 6 contracts traded and Open Interest is climbing to 1,066 contracts. The market is currently showing 2 bids @ 1.358 and 1 offer @ 1.367.

On the Crude Oil front we are trading higher on several issues, one being trade talks, geo-political concerns with Venezuela with Maduro's military entrenching itself on the border with Brazil making humanitarian aid such as food and medicine flow into the country. Both Cuba and Russia decried this as a military operation. Vladimir Putin must of saws shades of what he did to the Ukraine in 2018. This also leads to further shortages of heavy Crude Oil and the demand is increasing while the shortages grow. In the overnight electronic session the April Crude Oil is currently trading at 5776 which is 80 points higher. The trading range has been 5781 to 5671.

On the Natural Gas front the weather reports are calling for a colder than normal March. Being from Chicago and standing in the St. Patrick's Day parade where it could be 80 degrees Fahrenheit or 60 degrees Fahrenheit below, producers know that shoulder season is coming and if we see any rally this could be the last hurrah. In the overnight electronic session the March Natural Gas is currently trading at 2.687 which is 1 cent lower. The trading range has been 2.719 to 2.675.

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Contact Dan at (888) 264-5665 or dflynn@pricegroup.com.