Big Day for Grains Today. The Corn & Ethanol Report 02/08/18

We kickoff the day with Export Sales and Jobless Claims at 7:30 A.M., EIA Gas Storage at 9:30 and Crop Production Supply/Demand at 11:00 A.M. which we hope will continue to stir the pot and rally the Grains. In the overnight electronic session the March Corn is currently trading at 365 ½ which is a ¼ of a cent higher. The trading range has been 365 ¾ to364 ½. Let’s hope to see movement on Exports ahead of the Chinese New Year and while the Winter Olympics may slow down traffic at this time.

On the Ethanol front U.S. exports to Brazil surge on wide-open arbitrage with Ethanol prices at a 12 year low. Estimates from S&P Analytics estimate Brazilian imports of 650,000 cubic meters and might reach as high as 712,000 cubic meters with other countries imports getting stronger too. In the overnight electronic session the March Ethanol is currently trading at is currently trading at 1.408 which is unchanged. The trading range has been 1.413 to 1.408 with 5 contracts changing hands and Open Interest dropping to 1,079 contracts as rollovers to April has started to commence as we move to an early summer driving season. The market is currently showing 2 bids @ 1.406 and 2 offers @ 1.410.

On the Crude Oil the market is starting to rally after 5 sessions in a row of trading lower. I still see this only as a mirage as investors in the Stock Market panicked on hawkish statements from former FED Chair Janet Yellen which also brought the U.S. dollar higher. Now that we are on firmer ground the market will seek its own level. In the overnight electronic session the March Crude Oil is currently trading at 6154 which is 25 points lower. The trading range has been 6178 to 6108.

On the Natural Gas front we have the weekly EIA Gas Storage data this morning at 9:30 A.M. The Thomson Reuters poll with 26 analysts participating expect draws anywhere from 107 billion cubic feet (bcf) to 141 bcf. With the median draw of 116 bcf. This compares to the one-year decline of 142 bcf and the five-year average decrease of 151 bcf. In the overnight electronic session the March Natural Gas is currently trading at 2.727 which is 2 ½ cents higher. The trading range has been 2.748 to 2.681. We may see a short-term pop with Old Man winter casting his February spell before spring arrives and we move into shoulder season.

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

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