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
Plantings are behind in the Mid-West with wet or flooded fields and the weather forecast are calling for more rains keeping farmers of the fields. The Grain complex cannot seem to muster any type of rally with South America’s record harvest. Exports kept the bears at bay but they have this market bottled up with no end in sight. Also more fundamental news that Mexico and Argentina are talking new trade agreement that includes Agriculture. In the overnight electronic session the May Corn is currently trading at 362 which is ¼ of a cent higher. The trading range has been 362 ¼ to 360 ½.
On the Ethanol front there were no trades posted in the overnight electronic session. The May contract sinking Open Interest at 1,846 contracts versus the June growing Open Interest at 1,608 contracts. The May settled at 1.625 and is currently showing 6 bids @ 1.624 and 2 offers @ 1.642.
On the Crude Oil front the May contract hits expiration so we will shift our focus to the June contract. Last night’s weekly API Energy Stocks data showed draws but not as large as I anticipated and the market dipped 30 points after the number which was supportive but not to the traders that think fracking will save us from inventory shortages. As the draws did not come in as big as I preached that are coming our way geo-political risk that could lead to disruptions coupled with OPEC and non-OPEC production cuts in place that all countries seem to be abiding to at these price levels any surprise could lead to big spike to the upside. In the overnight electronic session the June Crude Oil is currently trading at 5283 which is 2 tics lower. The trading range has been 5304 to 5264.
On the Natural Gas front the market is in oversold mode. Like the Grain complex you have selling on one arm and buying on the other. You can still sell in an oversold market and still buy in a overbought market. Trading the market funds and fundamentals can trump technical analysis. In the overnight electronic session the May Natural Gas is currently trading at 3.185 which is 4 cents higher. The trading range has been 3.195 to 3.143.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374
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