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We kickoff the day with MBA 30-Year Mortgage Rate, MBA Mortgage Market Index, MBA Mortgage Refinance Index, MBA Purchase Index and MBA Mortgage Applications at 6:00 A.M., PPI MoM & YoY, Core PPI MoM & YoY, Retail Sales MoM & YoY, Retail Sales Ex Autos MoM and Retail Sales Ex Gas/Autos MoM at 7:30 A.M., Redbook YoY at 7:55 A.M., Fed Bostic Speech at 8:00 A.M., Industrial Production MoM & YoY, Manufacturing Production MoM & YoY and Capacity Utilization at 8:15 A.M., Fed Bullard Speech at 8:30 A.M., Business Inventories MoM, NAHB Housing Market Index and Retail Inventories Ex Autos MoM at 9:00 A.M., 17-Week Bill Auction at 10:30 A.M., 20-Year Bond Auction at 12:00 P.M., Beige Book and Fed Harker Speech at 1:00 P.M., Net Long-term TIC Flows, Overall Net Capital Flows and Foreign Bond Investment at 3:00 P.M., API Energy Stocks at 3:30 P.M., and Fed Logan Speech at 4:00 P.M.
On the Corn Front the corn export window is opening as the soybean window closing. The talk from Dale Durchholz, owner of Grain Cycles says the closing to of the soybean window has to do with Brazil’s projected record crop. Durchholz says it’s time for export demand to increase, “Brazil has been shipping some first corn crop, and still some old corn crop. They’re going to have to cut that off pretty quickly , Argentina’s kind of tight (due to drought impacting production).” Brazil’s second crop wont be available until this summer. In the overnight electronic session the March Corn is currently trading at 685 ½ which is a ¼ of a cent lower. The trading range has been 688 ¾ to 681.
On the Ethanol Front the USDA did not lower its corn for ethanol use estimate in the latest supply and demand report. Dale Durchholz again predicts, “The big number to track is finished motor gasoline supplied and its actually been a weak thing for quite some time and really tells us if gasoline demand is soft, that means ethanol demand will be soft.” Durchgolz thinks the saving grace for ethanol could be the increased availability of higher blends, “Offsetting that a little bit, I think probably is going to be the fact that were going to see more of these people with blender pumps and maybe see more E15 blend.”
The USDA’s next corn for ethanol use estimate is February 9th. There were no trades in ethanol futures.
Have A Great Trading Day!
Dan Flynn
Questions? Ask Dan Flynn today at 312-264-4374
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Image and article originally from blog.pricegroup.com. Read the original article here.