Crops News

Today’s markets: Happy winter solstice

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We kickoff the shortest day of the year with Export Sales, 3rd Quarter GDP and Initial Jobless Claims at 7:30 A.M. followed by EIA Gas Storage at 9:30 A.M. The Tax Reform Bill is going to show we are moving in the right direction with job growth and Unemployment shrinking which historically shows our economy is on the rise. On the Corn front the March contract is currently trading at 349 ½ which is a ¼ of a cent higher. The trading range has been 350 to 348 ¼. Changing weather forecasts have several markets do the shake & bake, but Old Man Winter will make the market and Jack Frost will be nipping at your toes. We are expected to see snow over the weekend and farmers and investors alike would love to see snow coverage for Mother Nature to take her course and have a great 2018 Planting Season and a plentiful crop to export.

On the Ethanol front the January contract is seeing a mass exodus with Open Interest declining further to 562 contacts while the February contract is rolling and growing to 1,632 contracts. In the overnight electronic session the Feb is currently trading at 1.307 which is .003 lower with 7 contracts traded. The market is currently showing 1 bid @ 1.305 and 2 offers @ 1.310 with investors growing interest on global governments passion to sustain more product when the realization is the glut is over and a lot of more attention will attract more investors and volume.

On the Crude Oil front we are flirting with $60 a barrel. A lot of naysayers did not believe we were even going to be close with fracking and a glut which historically gets eaten up by emerging markets with a healthy appetite such as China, India and Viet Nam just to name a few. Not to mention OPEC production cuts will change the dynamics of the market bias. This Industry is feast or famine and the market will repeat history. As far as fracking and electronic cars as a solution to demand investors that think this is a solution are very shortsighted. In the overnight electronic session the February Crude Oil is currently trading at 5779 which is 30 tics lower. The trading range has been 5819 to 5771.

On the Natural Gas front we have the weekly EIA Gas Storage number today with the Thomson Reuters poll with 24 participants estimating draws anywhere from 107 bcf to 186 bcf with most analyst on the heavy side of draws and the medium of 170 bcf. This compares to the one week of 69 bcf, the one year of 200 bcf and the five year average of 125 bcf. Depending on the weather forecast, and, Baby its Cold Outside we should see some movement to the upside. In the overnight electronic session the January contract is currently trading at 2.627 which is 1 cent lower. The trading range has been 2.662 to 2.568.

— Daniel Flynn

 

The Energy Report: T’was the energy report before Christmas

And Trump’s tax cut passed through the house, not one Democrat voted yes, they just sat there and groused. The hedge-funds stuffed political stockings with care, in hopes that the carried interest loophole still would be there. The Democrats wanted to tear the bill into shreds, it’s just a tax cut for the rich, and that was all that was said.

A 21% corporate tax rate and a local state deduction cap, it’s a deal that all of the Democrats wanted to scrap. But after it passed there arose such a clatter. Banks started to raise wages and soon that was all the chatter, bonuses were issued despite the backlash, it wasn’t trickledown economics, it was real cold hard cash. Workers looked happy after getting more dough. The store owners are happy because Christmas spending will grow.

Republicans celebrated and drank down some beers. The Trump tax cut vote was something to cheer. The raises and bonuses were so lively and quick, I thought that Nancy Pelosi was starting to look sick.

More rapid than eagles the yes votes they came, and because this is historic I will call some of their names! Yes Roby! Yes Rogers! Yes, Walters and Simpson!

On Roskem! On Davis! On Hultgren and Shimkus! To the top of the dome and in the Capitol hall, they voted for tax cuts! Tax cuts for all!

And before the ink dries the economy flies. In anticipation of the deal stocks went to the sky. Tax cuts are real! It’s to good to be true. Its not just being felt here it will be felt throughout the world too. And then, in a twinkling, oil will go through the roof. Increasing demand will be foolproof. As I drew in my head, it was turning around, down the inventories as refiners turn round. It’s a great time to be an entrepreneur and lift up from your boots instead of regulation and taxes taking your loot.

Trump said he would get the government off of your back and would make America great and get us on track.

Trumps eyes-how they twinkled! His dimples how merry! His tax cuts went through and he was smelling like roses, his nose like a cherry! His droll little mouth was drawn up like a bow, as he bowed and he waved to the people below.

It was a victory lap that he had in his teeth and the Congress encircled Mr. Trump like a big Christmas wreath. He had a broad face as he looked in the tele, he told jokes and they laughed, even General Kelly. He was happy like he was on the stump, a little verbose and a bit full of himself. Yet a wink of his eye and a twist of his head, Soon gave me to know I had nothing to dread. He spoke a few words, about the Members teamwork and wanting to put more workers to work. And laying his finger aside of his nose, he gave a nod and the applause meter rose! Before he gave the press a dismissal there was no talk about North Korean missiles, But I heard him exclaim, as he went out of sight, America will say Merry Christmas again and to all a good night!

— Phil Flynn

 

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