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 Crude Oil markets look pretty toppy but looks can be deceiving the market is trading near another support level. With Ethanol production at all-time highs and talk of fracking has investors thinking we will be swimming in Oil forever just like Jed Clampetts Cement pond. In today’s geo-political world and posturing by rogue states that could cause a disruption in the flow of product with free trade that could spark a sobering price spike and have us wondering where the glut is. This morning the May Crude Oil is currently trading at 5218 which is 47 points lower. The trading range has been 5276 to 5214. The market will need a new headline and it might get it tonight with the American Petroleum Institute (API) releases their weekly inventory keeping in mind OPEC’s resolve to keep production cuts in place.
On the Ethanol front there were no trades posted in the overnight electronic session. The May contract settled at 1.657 and is currently showing 2 bids @ 1.646 and 1 offer @ 1.662 with sinking Open Interest at 2.176 contracts.
On the Corn front planting progress is on the low side of analyst expectations. After the last USDA report showed Corn plantings at 3% and predictions ranged on this report to be 6% to 11% planted and the actual came in at 6%. Weather permitting with plenty of rain if we can get a dose of clear weather the farmers will catch up on plantings. In the overnight electronic session the May Corn is currently trading at 367 which is a ½ of a cent higher. The trading range has been 368 to 366 ½.
On the Natural Gas front the market looks heavy agai. The May contract is currently trading at 3.128 which is 3 ½ cents lower. The trading range has been 3.169 to 3.114. The market needs some bullish news to rally in this shoulder season.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374
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