Investor Strategy

The Corn And Ethanol Report: March 03, 2020

Good Morning!

We started off the day with G7 Conference Call at 6:00 A.M. with the conversation will be how much money they are willing to pump into the system to thwart this pandemic. We also have Redbook MoM and YoY, ISM new York Index at 8:45 A.M., IBD/TIPP Economic Optimism at 9:00 A.M., Fed Mester Speech at 1:50 P.M., API Energy Stocks at 3:30 P.M., Total Vehicle Sales at 5:00 P.M., Fed Evans Speech at 5:30 P.M. On the Corn front the BUYS have it, with a long overdue rally. I would like to see a close above 387 1/2 basis May, to keep the bulls rolling. However, most likely we will see profit taking more quickly as news coming from the G7 Conference Call is showing some indifference of how to meet the global economic slowdown, and I expect as I said before investors will be more likely not to hold on positions for too long. In the overnight electronic session the May Corn is currently trading 379, which is 3 1/2 cents higher. The trading range has been 380 1/2 to 376.

On the Ethanol front with the March contract set to expire tomorrow, we are seeing rollover activity pick up in the April and May contracts. In the overnight electronic session the April contract is currently trading at 1.300, which is .016 higher. The trading range has been 1.300 to 1.284. The market is currently showing 1 bid @ 1.275 and 1 offer @ 1.315. 13 trades passed hands and Open Interest is at 348 contracts.

On the Crude Oil front the market continues to roll on more production cuts on the horizon. We have the API Inventories later today and more news from the G7 Conference Call was that some countries are not committed to cut rates and the Stock Market is not liking it at the moment, which should lead to a volatile day. In the overnight electronic session the April Crude Oil is currently trading at 4762, which is 87 points higher. The trading range has been 4866 to 4731.

On the Natural gas front the market so far has sustained a rally. I do not believe in the rally and assuming with product so cheap LNG is moving with buyers abound. The shoulder season could stop the rally in its tracks depending on weather. In the overnight electronic session the April Natural Gas is currently trading at 1.785, which is 3 cents higher. The trading range has been 1.814 to 1.756.

Have a Great Trading Day!

The Corn And Ethanol Report: March 03, 2020

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