China Taking Their Ball and Bat and Going Home. The Corn & Ethanol Report 10/10/19
Daniel Flynn of The PRICE Futures Group - - Thu Oct 10, 12:20PM CDT

We kickoff the day with CPI, Export Sales, Jobless Claims and Real Earnings at 7:30 A.M. EIA Gas Storage at 9:30 A.M.,  4 & 8 week Bill Action at 10:30 A.M., Crop Production USDA Supply/Demand and WASDE Report at 11:00 A.M., FED Kashkari Speech at 11:15 A.M., 30 Year Bond Auction at 12:00 P.M., Monthly Budget Report Statement at 1:00 P.M.,  FED Mester Speech, and maybe U.S.- China Trade Talks? Also Delta Airlines Earnings today. The trade talks cooled before they started. The Chinese insisted they came in with good faith after days ago they said they could not negotiate in good faith after Washington imposed the blacklist. We will see how this day plays out. On the corn front Exports were weak and we wait for the USDA report later as a historic “all-out blizzard” over the Dakota’s and blasts of cold air across the much of the Plains and Mid-West. In the overnight electronic session the December Corn is currently trading at 393 ¾ which is a ½ of a cent lower. The trading range has been 395 to 392 ½.

On the Ethanol front, the November contract is currently trading at 1.493 which is .003 lower. The trading range has been 1.495 to 1.493. The market is currently showing 1 bid @ 1.491 and 1 offer @ 1.505 with 13 contracts traded and Open Interest at 435 contracts.

On the Crude Oil front, the market tanked last night with breaking news the U.S.-China trade talks broke down even before they started. The market recovered after the initial headline and is trading higher now. Turkey better watch their step in Syria or their economy will be vulnerable to heavy U.S. sanctions. The geo-political risk is on and we still have thirsting demand and tight supplies. In the overnight electronic session, the November Crude Oil is currently trading at 5309 which is 50 points higher. The trading range has been 5321 to 5138.

On the Natural Gas front we have the EIA Gas Storage data today. I am looking for an injection build of 99 bcf. In the overnight electronic session the November contract is currently trading at 2.244 which is 1 cent higher. The trading range has been2.259 to 2.231. We brace for the first real cold mass this winter.

Have a Great Trading Day!
Dan Flynn