Drama in the Marketplace. The Corn & Ethanol Report 04/12/18

We kickoff this morning with Export Sales and Jobless Claims at 7:30 A.M. followed by EIA Gas Storage at 9:30 A.M. The Export Sales number should be interesting with Argentina being a featured buyer of Soybeans on Tuesday and Wednesday. On the Corn front the market is not trading like a raging bull with the fundamentals advertising it should. Corn could lead the way in the Grain complex this year which is something we have not seen in decades. The bottom line is we need a break in the weather and get the farmers in the fields so we do not have a late planting year with demand growing exponentially. Sooner or later we should see a surge in this market. In the overnight electronic session the May Corn is currently trading at 385 ¾ which is 1 ½ of a cent higher. The trading range has been 387 ½ to 385.

On the Ethanol front the Trump administration decided to delay any reforms to the nation’s biofuel policy for three months to shield farmers from any possible trade war China. In the overnight electronic session the May Ethanol is currently trading at 1.505 which is .018 higher. The trading range has been 1.510 to 1.491. 46 contracts traded and Open Interest is at 1,099 contracts. The market is currently showing 2 bids @ 1.498 and 1 offer @ 1.504.

On the Crude Oil front the market is trading lower in the latest talk in the war of words. Will the U.S. strike Syria or will they wait or not strike at all. It is too early for investors to be loading up on long positions as the administration with the administration keeping everyone honest and guessing, especially our enemies. Investors will not want to hold a short position over the weekend in the current geo-political front and certain investors will look to buy value. In the overnight electronic session the May Crude Oil is currently trading at 6652 which is 30 tics lower. The trading range has been 6733 to 6632.

On the Natural Gas front the weekly EIA Gas Storage number will be released at 9:30 A.M. The Thomson Reuters weekly poll with 23 analysts participating expect draws anywhere from 38 bcf to 9 bcf with the expected number of 14 bcf. This compares to last years build of 47 bcf and the five-year average build of 38 bcf. In the overnight electronic session the May Natural Gas is currently trading at 2.685 which is 1 cent higher. The trading range has been 2.700 to 2.647.

Have a Great Trading Day!
Dan Flynn