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
Today the long awaited Planting Intentions and Grain Stocks report will be released at 11:00 A.M. Bur before that drama we have Personal Income at 7:30 A.M. and Chicago Purchasing Managers Index at 9:00 A.M. Also let’s throw in the Brexit issue with EU boss Jean-Claude Junker threatening to break up the U.S.A. over their failed economic policies. Mr. Junker we have to contend with a lot foes like your fellow European Soros and unlike Luxembourg in 1940 we did not surrender after 1 day of fighting. Be careful what you wish for Mr. Junker without the U.S.A. and Allied forces we would not be able to liberate you from your European conqueror. Also note when the Euro Currency was at its highs and the American economy was struggling Mario Draghi short sided view said “it is an American problem not a European problem”. Well now you’re imploding and I guess you’re on your own.
Getting back to the focus of what speculators are looking ahead with the Planting Intentions with the buzz on the street Corn plantings are expected to come in lower with the shakeup in the EPA and a changeup in the Renewable Fuel Standard (RFS) and another bumper crop predicted as the weather forecast a neutral to weak El Nino factor in late summer. South America is showing record crops and with exports flowing the market is not able stabilize prices for profit margins to farmers. In the overnight electronic session the May Corn is currently trading at 358 ½ which is 1 cent higher. The trading range has been 359 to 357 ¼.
On the Ethanol front no trades were posted in the overnight electronic session. We will change our focus to the May contract because of mounting Open Interest of 3,036 contracts is well above the April contract and the May contract settled at 1.603 and is currently showing 1 bid @ 1.604 and 1 offer @ 1.612. The market will be closely shadowing the Energy markets and the Grain report at 11:00 A.M.
On the Crude Oil the market had a good close yesterday closing above $50 a barrel and looks to be headed higher after the latest weakness in trade. With global politics and the stock market losing some steam recently the market today is mostly trading flat. In the overnight electronic session the May Crude Oil is currently trading at 5028 which is 7 tics lower. The trading range has been 5038 to 4990.
On the Natural Gas front the market continues to baffle me like the weather In January and February when I was wildly bullish and the weather showed I should have been bearish sold rallies. Now in shoulder season I’m licking my wounds and on the sidelines the market is showing strength and trading higher. Go figure, I am still am cyphering what my next move will be. In the overnight electronic session the May Natural Gas is currently trading at 3.231 which is 4 cents higher. The trading range has been 3.240 to 3.195.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374
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