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
We kickoff the day with a lot of economic reports starting with Jobless Claims and Personal Income at 7:30 A.M., Chicago Purchasing Manufacturing Index (PMI) at 9:00 A.M., EIA Gas Storage at 9:30 A.M., EIA Energy Stocks at 10:00 A.M. and Dairy Product Sales at 2:00 P.M. with earnings coming out as well. We also have the European – U.S. talks on tariffs on metal products today. Plenty of news is in the air today. Tropical Storm Alberto flooded parts of the Mid-West but certain regions did get the perfect measure of rain and we will see temperatures reach 90 degrees today which is perfect growing weather for Corn. We are still surveying the possible flood damage in some fields with heavy rains. In the overnight electronic session the July Corn is currently trading at 395 ½ which is 2 cents higher. The trading range has been 397 ½ to 393 ¼.
On the Ethanol front the July contract is trading at 1.485 which is .004 higher. The trading range has been 1.485 to 1.484. The market is currently showing 1 bid @ 1.483 and 2 offers @ 1.486. 4 trades past hands and Open Interest is at 1,199 contracts.
On the Crude Oil front we should get more of a pullback with tariff talk and drama with Italy elections that could Segway into them leaving the Euro. I still believe in the long run they will know that would be a bad move. With all the headlines as the market sells off it could be an awesome buying opportunity with a possible revision from last week’s huge build on Crude Stocks that just did not add up. The report is scheduled to be released at 10:00 A.M. In the overnight electronic session the July Crude Oil is currently trading at 6761 which is 60 points lower. The trading range has been 6830 to 6752.
On the Natural Gas front the July contract is currently trading at 2930 which is 4 ½ cents higher. The trading range has been 2.940 to 2.887. Today we have the EIA Gas Storage at 9:30 A.M. The Thomson Reuters weekly poll with 19 analyst participating expect builds anywhere from 88 bcf to 107 bcf with the median build of 102 bcf. This compares to the one-year build of 80 bcf and the five-year average build of 97 bcf.
Have a Great Trading Day!