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 CPI and Real Earnings at 7:30 A.M., Crop Production USDA Supply/Demand at 11:00 A.M., API Energy Stocks at 3:30 P.M. and day one of the FOMC meeting. Expectations are that we will get a rate hike tomorrow. On the Corn front yesterday’s Crop Progress showed Corn to be in 78% in good to excellent condition. We have the gig monthly reports at 11:00 A.m. In the overnight electronic session the July Corn is currently trading at 369 ¼ which is 2 cents higher. The trading range has been 371 to 367 ¼. Rains and warm temperatures dominate the weather scene in the Mid-west.
On the Ethanol front the Chinese city of Tianjin will have Gasoline added with Ethanol in most vehicles by September. The move by Tianjin, a port city in Northern China with a population of roughly 15 million people. Tianjin is expected to use 260,000 tonnes of fuel each year. That would mean a consumption of 780,000 tonnes of Corn, as three tonnes of Corn makes 1 ton of Ethanol. China is estimated to be sitting on huge stocks of Corn estimated at roughly 200 million tonnes. In the overnight electronic session the July Ethanol is currently trading at 1.428 which is .002 higher. The trading range has been 1.431 to 1.428. 5 contracts traded and Open Interest is at 851 contracts.
On the Crude Oil front we have the weekly API Energy Stocks at 3:30 P.M. and an upcoming OPEC-Non-OPEC meeting which is going to be based on production quotas. In the overnight electronic session the July contract is currently trading at 6603 which is 7 points lower. The trading range has been 6659 to 6587. Last Trading Day for the July contract is Wednesday June 20th, so you should be liquidated on Monday June 18th.
On the Natural Gas front the July contract is currently trading at 2.969 which is 2 cents higher. The trading range has been 2.988 to 2.953. Warmer temperatures seem to be supporting this market even though it is oversupplied and the futures are leading the cash market.
Have a Great Trading Day!
Dan FlynnQuestions? Ask Dan Flynn today at 312-264-4374