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
After the FED hiked rates ¼ of a point as expected this morning we have more reports to gauge the ongoing recovery we sorely missed the last eight years. Starting off with Exports Sales and Initial Jobless Claims at 7:30 A.M. Followed by Capacity Utilization and Industrial Production at 8:15 A.M. EIA Gas Storage at 9:30 A.M. and NOPA Crush at 11:00 A.M.
On the Corn front parts of the Mid-West that were thirsting for rain received it in a good dose yesterday and last night. More warm temperatures and spotty rains are forecasted for today through Monday. This morning’s Export Sales could lend a supporting hand but the rains in the forecast could paint a bleak picture for any rallies. In the overnight electronic session the July Corn is currently trading at 375 which is 2 cents lower. The trading range has been 378 to 374 ½.
On the Ethanol front there were no trades posted in the overnight electronic session. The July contract settled at 1.549 and is currently showing 1 bid @ 1.546 and 4 offers at 1.567 with diminishing Open Interest at 822 contracts. Rollovers are coming shortly with the August Open Interest is poise to overtake the spot with 685 open contracts.
On the Crude Oil front what can you say when the pendulum goes from builds on the API at 2.75 million barrels to the EIA showing draws of 1.7 million barrels. That’s a swing of 3 million missing barrels and the market still crapped out and sold off. We are at key support and CNBC reports that we have an Oil supply glut. I am not chicken-little but if we have a nice warm summer and OPEC toe’s the line on Production Cuts we will see this so-called Oil glut evaporate very quickly. In the overnight electronic session the July Crude Oil is currently trading at 4448 which is 25 points lower. The trading range has been 4481 to 4438.
On the Natural Gas front we have the weekly EIA Gas Storage. Which brings us to Scott Divasino’s weekly Thomson Reuters poll with 28 analyst participating and expecting injection builds of anywhere from 77 bcf to 94 bcf with the median of 86 bcf. Phil Flynn from the Price Group expects an injection number of 80 bcf. This compares to the 1 week of 106 bcf, the 1-year of 68 bcf and the five-year average of 87 bcf. In the overnight electronic session the July contract is currently trading at 2.948 which is 1 ½ of a cent higher. The trading range has been 2.958 to 2.935.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374
A Subsidiary of Price Holdings, Inc. – an Employee Owned Diversified Financial Services Firm. Member NIBA, NFA
Past results are not necessarily indicative of future results. Investing in futures can involve substantial risk of loss & is not suitable for everyone. Trading foreign exchange also involves a high degree of risk. The leverage created by trading on margin can work against you as well as for you, and losses can exceed your entire investment. Before opening an account and trading, you should seek advice from your advisors as appropriate to ensure that you understand the risks and can withstand the losses.
The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or futures. The Price Futures Group, its officers, directors, employees, and brokers may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction. Reproduction and/or distribution of any portion of this report are strictly prohibited without the written permission of the author. Trading in futures contracts, options on futures contracts, and forward contracts is not suitable for all investors and involves substantial risks. ©2017
SubscribeReceive daily summaries of all Market Insights blog posts.
Enter email below.
Most Recent Posts
- Morning Grains Report 10/23/17
- Morning Softs Report 10/23/17
- No Where to Run to. The Corn & Ethanol Report 10/23/17
- Slowdown in Shale. The Energy Report 10/23/17
- Morning Grains Report 10/20/17
- Morning Softs Report 10/20/17
- Corn Growers Look Ahead to Future. The Corn & Ethanol Report 10/20/17
- China’s Minsky Moment. The Energy Report 10/20/17