Harvest Moon. The Corn & Ethanol Report 10/05/17

We have a busy morning with Export Sales, Initial Jobless Claims, and U.S. Trade Balance at 7:30 A.M., Factory Orders at 9:00 A.M., EIA Gas Storage at 9:30 A.M. and Dairy Product Sales at 2:00 P.M. On the Corn front we closed lower in yesterday’s action with whispers making the rounds that a decline in the 2017 Corn crop may not drop as earlier predicted from the USDA September estimates. Also weather in Brazil could slow plantings and possibly reduce acreage. In the overnight electronic session the Corn is trading higher with the December contract currently trading at 349 ¾ which is 1 ½ of a cent higher. The trading range has been 350 ¾ to 348.

On the Ethanol front there were no trades posted in the overnight electronic session. The November contract is now the lead month with October’s expiration. The November contract settled at 1.436 and is showing 2 bids @ 1.449 and 3 offers @ 1.459 with Open Interest at 1,103 contracts.

On the Crude Oil front the market is flirting with $50 a barrel and is currently trading at 4998 which is unchanged. The trading range has been 5028 to 4985. This market and the complex seems to sell off on a bogus headline time after time again. Eventually the true fundamentals will wake up investors and realities of the Crude Oil and Products face in the future.

On the Natural Gas front we have the weekly EIA Gas Storage data at 9:30 A.M. and the Thomson Reuters poll of 22 analysts participate expecting expect injections builds anywhere from 42 bcf to 68 bcf with the median at 51 bcf. This compares to last week’s injection of 58 bcf, the one-year at 76 bcf and the five-year average of 91 bcf. These numbers kind of paint a picture if we get a weather event with cold and snowy weather and producers will have to ramp up production and could create a squeeze sending the market sailing. In the overnight electronic session the November contract is currently trading at 2.940 which is unchanged. The trading range has been 2.951 to 2.922.
Thanks,
Dan Flynn
Questions? Ask Dan Flynn today at 312-264-4374

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