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
Rain makes Grain and the markets thirst for a rally and crops thirst for rain actually happened at the same time. Who Thunk? With investors start worrying about yields and inspire a rally which will be met with Farmer and Fund selling. Also Planalytics cut Corn yields from 167.4 bushel/acre to 166.9 bu/acre. This is quite a slide from the June 9th USDA forecast of 170.7 bu/acre. Rains and warmer temperatures in the mix this weekend will leave investors thinking if it is too late to be conducive. In the overnight electronic session the July Corn is currently trading at 379 ¼ which is ¼ of a cent lower. The trading range has been 380 to 377.
On the Ethanol front the U.S. Environmental Protection Agency (EPA) is expected to propose renewable fuel use requirements for 2018 anytime now. The chatter on the street is there will be no major changes and a modest increase to biofuels according to Jarrett Renshaw and Chris Prentice with Reuters. There were no trades posted in the overnight electronic session. The July contract settled at 1.573 and is currently trading at 1.573 and is currently showing 1 bid @ 1.571 and 1 offer @ 1.596 with Open Interest at 765 contracts and is now below the August contract Open Interest at 855 contracts. Rollovers will be the talk of this market until the EPA’s proposal is locked in.
On the Crude Oil front the question is… Have we hit rock bottom? July option expiration yesterday kept any further break to the downside or any rally in check. The market is still vulnerable for another break but even though we are not out of the woods yet it increasingly looks like we could trade higher from here, both technically and fundamentally the market looks to be a buy. In the overnight electronic session the July contract is currently trading at 4485 which is 39 points higher. The trading range has been 4494 to 4424. Next Tuesday is the Last Trading Day for the July contract so Monday we will rollover to the August contract.
On the Natural Gas front yesterday’s EIA Gas Storage had a bullish spin and the market reacted with warmer temperatures on the horizon. Weather forecasts continue to change or be updated while investors are banking on a dry heat spell which should propel prices this summer. In the overnight electronic session the July contract is currently trading at 3.055 which is 1 tic lower. The trading range has been 3.082 to 3.038.
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 Softs. 08/16/17
- U.S. plans sale from Strategic Petroleum Reserve
- Housing Starts and Permits & EIA Energy Stocks. The Corn & Ethanol Report 08/16/17
- Crude Draws Continue. The Energy Report 08/16/17
- Oil prices move lower on seasonal pressures
- Morning Grains. 08/15/17
- Morning Softs. 08/15/17
- Crop Progress Seen Unchanged. The Corn & Ethanol Report 08/15/17