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
A lot of perceived drama over the weekend that only put a red-face on Kim Jong-un and his threats. The market retreated early in the overnight but is creeping higher as more bulls will get on board.
On the Corn front the market is in a tight trading range and the glorious weather we experienced over the Easter weekend is as fickle as spring with severe thunderstorms are on the horizon which will affect plantings. The market is keying in on what we put in the ground and South America’s record crop. In the overnight electronic session the May Corn is currently trading at 370 which is 1 cent lower. The trading range has been 372 to 369 ¾.
On the Ethanol front we are starting to see rollovers from the May to the June contract. The May contract is currently trading at 1.667 which is .004 of a cent lower. The trading range has been 1.671 to 1.667. The May Open Interest is continuing to slide at 2.242 contracts while the June Open Interest is rising to 1,328 contracts.
On the Crude Oil front the talk of oversupply is overrated as we head into and change different blends of Gasoline in the summertime season. The talk of oversupply and shale producers impacting this market in the short term is not going to be a reality. Also OPEC continues their commitment to cur production that could lead to $60 a barrel of Crude. Even with shale producers confident they can make money at these levels they also have to get the infrastructure and maintenance in place before they are on all cylinders like before the Saudi’s flooded the market to drive them out of business. In the overnight electronic session the May Crude Oil is currently trading 5310 which is 8 points lower. The trading range has been 5317 to 5263.
On the Natural Gas front the market continues to sell-off any rallies regardless of record exports, we have plenty of supply unless we get a weather scare with hot weather that will get the air-conditioners working overtime as the Coal Industry catches up to the new administrations friendly Energy policy. In the overnight electronic session the May contract is currently trading at 3.177 which is 5 cents lower. The trading range has been 3.249 to 3.170.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374
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