The Corn And Ethanol Report: 02_04_20

Markets Looking Beyond Coronavirus

Good Morning!

We kickoff the day with Redbook YoY and MoM at 7:55 A.M., ISM New York Index at 8:45 A.M., Economic Optimism and Factory Orders at 9;00 A.M., Dairy Product Sales at 2:00 P.M., Total Vehicle Sales at 3:00 P.M. and API energy Stocks at 3:30 P.M. There seems there may be an overlooked key find to a vaccine to combat the coronavirus. It worked against the SARS virus and may have the potency to kill this bug as well and does not need testing to administer to humans so we can move forward rather quickly once approved. The news has the markets in the green. Although Ag-giants such as ADM and CARG are still shutting their facilities in China proper until further notice. The Grains are in the green and on the Corn front the March contract is currently trading at 381 ¾, which is 3 cents higher. The trading range has been 383 ½ to 378 ¼.

On the Ethanol front there were no trades posted in the overnight electronic session. The March contract settled at 1.354 and is currently showing 1 bid @ 1.356 and 2 offers @ 1.368 with Open Interest at 456 contracts. The February contract expires tomorrow and there are still 20 Open Positions this morning.

On the Crude Oil front Chinese stimulus, OPEC production cuts and news from the World Health Organization that the coronavirus is bad but not as bad as we initially thought. We still have testing to do, but if correct and we lasso this virus and see factories reopen for business in China soon plus the stimulus we could see the Energy sector boon. In the overnight electronic session the March Crude Oil is currently trading at 5141, which is 130 points higher. The trading range has been 5155 to 4966.

On the Natural gas front we are seeing the strength in the Energy sector spillover to the Natural Gas. Also forecasts for a warm February are now downplayed and have changed to colder temperatures hanging around the freezing levels to the 20’s. In the overnight electronic session the March Natural Gas is currently trading at 1.844, which is 2 ½ cents higher. The trading range has been 1.846 to 1.804.

Have a Great Trading Day!