Tanks for Nothin Mother Nature. The Corn & Ethanol Report 10/11/17

Santa Ana Winds destroying the wine fields in Napa Valley and the destruction of life as we have seen with the destruction we have witnessed in this active hurricane season. Our prayers go out to the persons affected by these Acts of God and the First Responders giving it their all to say lives. On the Corn front yesterday’s Reuters poll showed harvest at 27% complete with 62 % rated good to excellent. While Corn harvested and condition vary from state to state and county to county and the heavy rains should slow down the harvest which should create some sort short covering. With the market not responding ahead of tomorrow’s Crop Production USDA Supply/Demand data. In the overnight electronic session the December Corn is currently trading at 347 ¾ which is 1 ½ of a cent lower. The trading range has been 349 to 347.

On the Ethanol front the November contract posted a trade at 1.424 which is .004 of a cent higher. The market is currently showing 1 bid @ 1.424 and 1 offer @ 1.429 with 2 contracts traded and declining Open Interest at 1,012 contracts. This market is poised to take off in the next few years with China importing and implementing Ethanol in their fuel standard in this emerging market and could accelerate a bullish tone and be a long-term bottom in this market and the Corn market.

On the Crude Oil front the investors in this market are slowly coming to the realization of shortages ahead. With a wide Brent Crude WTI Crude spread we should see more exports and expect OPEC to stand firm on production cuts. This is a changing of the guard of bearish sentiment. In the overnight electronic session the November Crude Oil is currently trading at 5102 which is 10 tics higher. The trading range has been 5142 to 5081. At 3:30 P.M. today we will have the weekly API Energy Stocks data which I expect further bullish news.

On the Natural Gas front the market has raised eyebrows again catching investors short when they were bulls and did not want to get fooled again. But getting caught long or short and trying to bottom feed bullish sentiment went to the wayside and bulls got caught being bears. Just when you thought it was safe to get back in the water… Bullish fundamentals in the next few years should get this market and the complex rolling. In the overnight electronic session the November Natural Gas is currently trading at 2.931 which is 4 cents higher. The trading range has been 2.946 to 2.876.

Have a Great Trading Day!
Dan Flynn
Questions? Ask Dan Flynn today at 312-264-4374

View The Corn & Ethanol Report Archives • www.pricegroup.com

A Subsidiary of Price Holdings, Inc. – an Employee Owned Diversified Financial Services Firm. Member NIBA, NFA

Past results are not necessarily indicative of future results. Investing in futures can involve substantial risk of loss & is not suitable for everyone. Trading foreign exchange also involves a high degree of risk. The leverage created by trading on margin can work against you as well as for you, and losses can exceed your entire investment. Before opening an account and trading, you should seek advice from your advisors as appropriate to ensure that you understand the risks and can withstand the losses.

The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or futures. The Price Futures Group, its officers, directors, employees, and brokers may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction. Reproduction and/or distribution of any portion of this report are strictly prohibited without the written permission of the author. Trading in futures contracts, options on futures contracts, and forward contracts is not suitable for all investors and involves substantial risks. ©2017