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
This morning is May Day/ Labor Day in several countries. We have busy day ahead even with so many countries on holiday. We start out the day with Construction Spending and ISM Manufacturing Index at 9:00 A.M., Cotton System, Fats & Oils and Grain Crushing at 2:00 P.M. Followed by API Energy Stocks at 3:30 P.M. We also have the FOMC meeting today and tomorrow and it looks like the Fed will hold rates in check. Also the U.S. EPA granted Financial Hardships bio-fuels waiver to avoid tens of millions of dollars in costs to refineries for the Renewable Fuel Standard (RFS). The waiver exempting these refineries from going out of business but will be met with stiff resistance from the powerful Corn lobby. The EPA granted two dozen waivers in 2017 and only eight waivers annually under the previous administration. On the Corn front U.. Corn planting are seen 18% complete and farmers are itching to pick up the pace and the weather this week should help. In the overnight electronic session the July Corn is currently trading at 401 ½ which is ¾ of cent higher. The trading range has been 402 to 399 ¾.
On the Ethanol front the June contract posted a trade at 1.450 which is unchanged. The market is currently showing 1 bid @ 1.448 and 2 offers @ 1.450. 5 contracts traded and Open Interest is at 887 contracts.
On the Crude Oil front we had quite the day in yesterday’s trading session. And surprise, surprise, surprise the Iranians cheated on the Nuclear deal that was sold by the last administration as rainbows, blue stars, yellow moons and throw in a unicorn. Apparently someone was sleeping in their history class when the we were taught about appeasement by Neville Chamberlain and Jimmy Carter. In the overnight electronic session the June Crude Oil is currently trading at 6777 which is 80 points lower. The trading range has been 6890 to 6773.
On the Natural Gas front what can I say except to fade the cause and effect because this does not make any sense. The weather is turning and we are trading higher. In the overnight electronic session the June contract is currently trading at 2.798 which is 3 ½ cents higher. The trading range has been 3.807 to 2.759.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374