API Data? What a Joke. The Corn & Ethanol Report 12/05/18/

As the country celebrates the life of President George Herbert Walker Bush that has almost all institutions closed, the commodity markets are open. And this morning we have to take a hard look at yesterday’s API data, and if you put a pencil to it make sure you have an eraser. Starting with last week’s exports were the bomb with records broken compared to nil this week. Especially with whispers on the street that see the U.S.-Sino talks already championed exporting Crude Oil and Soybeans as trade talks continue to manifest. Unfortunately the American Petroleum Institute (API) transparency in consistency is as close as the charges brought up are as close to the Mueller probe that should be retired as well.

On the Corn front we are trading in quiet mode with the March contract currently trading at 383 ¼ which is 1 ½ of a cent lower. The trading range has been 384 ¼ to 382 ¾. This market is generally concerned about future carryover with exports in mind and also the open market on Ethanol exports with Brazil’s sugarcane-based Ethanol could be a game changer in prices and competition. And Ethanol is on the campaign trail as Michael Bloomberg visited Iowa and backtracked on his earlier criticism of Ethanol, changing his tune? Just like he turned his back on the New York Police Department and other first responders.

Further on Ethanol the December contract expires today and there were no trades in the overnight electronic session. The January contract settled at 1.272 and is currently showing 1 bid @ 1.256 and 1 offer @ 1.268 with Open Interest climbed to 1,820 contracts in yesterday’s action.

On the Crude Oil front yesterday’s API data left investors scratching their heads as if they believe in the past administration and unicorns. We will see OPEC production cuts and we may have a formal announcement today and a lot of investors are not biting into headlines that would have normally shake, rattled and rolled the market with the headlines nothing more than moot news or fake news. In the overnight electronic session the January Crude Oil is currently trading at 5329 which is 4 tics higher. The trading range has been 5344 to 5216. Hopefully we get a headline from the OPEC meeting to put this market back in balance.

On the Natural Gas front the markets momentum pendulum is still on the upswing. In the overnight electronic session the January Natural Gas is currently trading at 4.582 which is 12 ½ cents higher. The trading range has been 4.630 to 4.493.

Have a Great Trading Day!
Dan Flynn