Record Natural Gas Draw Predicted. The Corn & Ethanol Report 01/11/18

We kickoff the day with Export Sales, Jobless Claims and Producer Price Index (PPI) at 7:30 A.M., followed by EIA Gas Storage at 9:30 A.M. I anticipate a good Jobs number later this morning and we should have a record Natural Gas draw. The weekly Thomson Reuters poll of 25 participants forecast draws anywhere from 285 bcf to 362 bcf with the median of 333 bcf. This compares to last week’s draw of 206 bcf, the 1-year of 151 bcf and the five-year average of 162 bcf. This draw could be the largest draw since the Energy Information Agency (EIA) collected data going back to 1994. Even with an Arctic Blast coming to a theatre near you once again conflicting weather reports differ in how long it will last and Producers will move product if we rally above $3 because the cash market has been brutal to them. In the overnight electronic session the February contract is currently trading at 2.971 which is 6 ½ cents higher. The trading range has been 2.973 to 2.884.

On the Corn front, “All Quiet on the Western Front”, with the March contract currently trading at 349 which is unchanged in the overnight electronic session. The trading range has been 349 ¾ to 348 ½. Investors are keeping their hands to their sides and cards close to the vest just in case there are any surprises in tomorrow’s Crop Production, Grain Stocks and USDA Supply/Demand data.

On the Ethanol front the February contract just made a new low in the overnight electronic session. The market is currently last at 1.315 which is .009 of a cent lower. The trading range has been 1.324 to 1.315 with Estimated Volume at 3 contracts traded and Open Interest at 1,456 contracts. The market is currently showing 1 bid @ 1.315 and 1 offer @ 1.321.

On the Crude Oil front the market keeps plugging away and as we move closer to the long holiday weekend and we have a good Jobs and PPI number we could see this market attempt to close above $64 a barrel in today’s trading session. In the overnight electronic session the February Crude Oil is currently trading at 6389 which is 32 points higher. The trading range has been 6408 to 6343.

Have a Great Trading Day!
Dan Flynn
Questions? Ask Dan Flynn today at 312-264-4374

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