Markets are Rolling. The Corn & Ethanol Report 04/12/19

We have April Lean Hog expiration today and we heard excellent export news out of China which shows their stimulus is showing results as you can see in the Copper and Crude Oil markets this morning. On the Corn front farmers are still reeling from Bomb Cyclone Storm Deux which snows that dumped up to two feet of the wicked white stuff. This winter is getting old my friends. Treasury Secretary Steven Mnuchin said there were positive steps in the ongoing delicate slow-moving U.S.-China trade negotiations and Mr. Mnuchin is preaching to farmers and traders, “ patience grasshopper”. And at the end of the day the patience should pay of versus a half-hearted deal. In the overnight electronic session the May Corn is currently trading at 360 which is unchanged. The trading range has been 361 ¼ to 359.

On the Ethanol front Secretary of Agriculture Sonny Perdue was quoted that the U.S. and China were in talks of reducing Ethanol tariffs and duties regarding Dried Distillers Grain (DDG’s)The current weather and six-week forecast expect more wet weather and further shortages in Ethanol. EPA Chief Andrew Wheeler said the EPA may grant fewer small refinery exemptions from biofuel laws due to lower RIN prices. Wheeler also said the EPA is on track to complete the year-round sales of higher Ethanol blends of Gasoline by June. In the overnight electronic session the May Ethanol is currently trading at 1.338 which is .001 higher. The trading range has been 1.338 to 1.333. 34 contracts traded and Open Interest is at 830 contracts. The market is currently showing 2 bids @ 1.337 and 3 offers @ 1.340.

On the Crude Oil front same old song with Libya and Venezuela and getting worse.  Good news in economic news out of China and a story that Chevron plans to buy Anadarko Petroleum in a $33 billion cash and stock deal. Mergers and Acquisitions are a sure sign of a bull market in the future. In the overnight electronic session the May Crude Oil is currently trading at 6412 which is 54 points higher. The trading range has been 6465 to 6366.

On the Natural Gas front the May contract is currently trading at 2.667 which is .003 of a cent higher. The trading range has been 2.688 to 2.657. The market seems to be following suit of higher prices in the Energy complex.

Have a Great Trading Day!
Dan Flynn