Dan Flynn is the writer of The Corn & Ethanol Report, a daily market letter covering grains, energies, and various global issues that are the driving force and backbone of the commodity markets. Contact Mr. Flynn at (312) 264-4374
The Dan Flynn Corn & Ethanol Report
Wednesday April 24th 2013
In the overnight electronic session the Corn continues to stumble with the May contract currently trading at 639 ¾ which is 1 ¼ cents higher as I write. The trading range has been 640 ¼ to 636 so far. Speaking to farmers across the country we have a definite problem with this crop again this year. Regardless of last month’s USDA Supply/Demand number miraculously conjuring up a whole lot of carryover that no farmer or grain elevator knew it existed, the facts are the facts and we will have a tough year ahead and the market will price this in sooner or later. Stay Tuned!
On the Energy Front the June Crude Oil is currently trading at 8947 which is 29 points higher as I write. The trading range has been 8996 to 8921 so far. The API numbers showed a draw of 845 thousand barrels versus a forecast of a build of 1 million. Gas stocks were off 2.7 million versus a forecast of a build of 1 million barrels with Distillates pretty much in line with expectations. This morning the EIA data will be released at 9:30 CST and will confirm which direction the market is headed. It will be a tough call with global economies slowing down, however, we could see stimulus on the horizon which will propel commodity prices. Natural Gas prices are holding their own regardless of extreme weather temperatures that would fuel more premium. There is still way to many bullish fundamentals that are the driving force in this market. On the Ethanol Front the June contract posted a trade at 237.1 which is .006 higher. I expect bullish trade in today’s session.
Have a Great Trading Day!
The PRICE Futures Group
Questions? Ask Dan Flynn today at 312-264-4374
Futures and options trading involves substantial risk of loss and may not be suitable for everyone. The information presented is from sources believed to be reliable and all information is subject to change without notice.
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