USDA Supply/Demand Today. The Corn & Ethanol Report 02/08/19
Daniel Flynn of The PRICE Futures Group - - Fri Feb 08, 11:03AM CST

We kickoff the 2nd Friday of February with Wholesale Trade at 7:30 A.M. and Crop Production USDA Supply/Demand at 11:00 A.M. On the Corn front in the overnight electronic session the complex is trading higher but once again in a narrow trading range. The March Corn is currently trading at 378 ¾ which is 2 ¼ cents higher. The trading range has been 379 to 376 ½. After today’s report we will look ahead to next week to see if we can actually gain any traction in the U.S.-China trade talks.

On the Ethanol front there were no trades posted in the overnight electronic session. U.S. Ethanol production dropped 5% due to the Polar Vortex last week and another one is on the horizon. Some U.S. Ethanol is making its way into China via a back door expensive way to ship to circumvent tariffs. And other news that the U.S. has asked Brazil to consider lifting tariffs imposed on Ethanol exports. Interesting how negotiating fair trade for the long-term grabs people’s attention. The March Ethanol settled at 1.293 with continued decline in Open Interest at 1,409 contracts. The market is currently showing 1 bid @ 1.286 and 1 offer @ 1.290.

On the Crude Oil front the market is rallying back from negative headlines that most likely will end up not to be true. However, the fundamentals and technical that I see should show a significant rally when investors have an epiphany that organizations like the International Energy Agency (IEA) comments are normally to protect buyers of Crude Oil and their sole purpose is to trade their book and shoot a headline that in reality is not the real deal. Thus squashing any rallies, and when reality sets in it is like banks intervening on a currency, you could only go so far. In the overnight electronic session the March Crude Oil is currently Trading at 5288 which is 24 points higher. The trading range has been 5295 to 5208.

On the Natural Gas front the market is bouncing back on forecasts of the mercury dropping to below zero again. In the overnight electronic session the March contract is currently trading at 2.601 which is 5 cents higher. The trading range has been 2.602 to 2.563.

Have a Great Trading Day!
Dan Flynn