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 start off the day with Business Inventories, Export Sales, Jobless Claims and Retail Sales at 7:30 A.M. followed by the EIA Gas Storage at 9:30 A.M. The Grains are taking a beating on tariff talk and not reality that consumers will come to the U.S. market. This could be creating a golden buying opportunity; however, no one wants to catch a falling knife. On the Corn front the leader of the pack has gone down with sympathy with Soybeans and the Wheat market in fast retreat. In the overnight electronic session the July Corn is currently trading at 370 ¾ which is 5 ¼ cents lower. The trading range has been 374 ¾ to 370.
On the Ethanol front the July contract is currently trading at 1.428 which is .009 lower. The trading range has been 1.435 to 1.428. 8 contracts traded while the market is currently showing 6 bids @ 1.426 and 2 offers @ 1.430 with Open Interest at 827 contacts.
On the Crude Oil front the market held key support and investors are coming to the realization that even with more production be threatened to the market, global demand will gladly scoop up that energy and put it to use. And now the understanding that fracking alone will not keep this glut alive in this boom or bust industry. The emerging markets of the world will drink this black gold as much as it can be produced. In the overnight electronic session the July Crude Oil is currently trading at 6703 which is 39 points higher. The trading range has been 6716 to 6651.
On the Natural Gas front the market is acting strangely overbought but higher temperatures could put in another price spike. We have the weekly EIA Gas Storage data today and the Thomson Reuters weekly poll with 23 analysts participating anticipate injection builds anywhere from 82bcf to 95bcf with the median of 90bcf. This compares to the one year of 63bcf and the five-year average injection build of 83bcf. In the overnight electronic session the July contract is currently trading at 2.958 which is a ½ of a cent lower. The trading range has been 2.970 to 2.934. This will continue to be a tricky market to trade with Mother Nature and the basis way out of whack.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374