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
On the final trading day of the 2nd quarter we start off the day with Personal Income, Consumer Spending and Core Inflation at 7:30 A.M., Chicago PMI at 8:45 A.M. and the Grain reports everyone has been waiting for Grain Stocks and Planted Acreage. On the Corn front today is First Notice Day on July Grains so hopefully you’re out of those contracts because you are at risk of delivery. In the overnight electronic session the September Corn is currently trading at 357 ¼ which is 3 cents higher. The trading range has been 357 ¾ to 354 ¾. Grains are once again higher in the overnight, let’s see if this will hold going into the open outcry session.
On the Ethanol front there were no trades posted in the overnight electronic session. The August contract settled at 1.430. The market is currently showing 1 bid @ 1.429 and 1 offer @ 1.436 with Open Interest at 1,039 contracts.
On the Crude Oil front a headline that the Trump administration will meet with countries importing Oil from Iran which was just the news to slow a runaway bull market. A pullback was due and we will see when the smoke clears if we reach new highs. In the overnight electronic session the August Crude Oil is currently trading at 7354 which is 9 points higher. The trading range has been 7367 to 7293. The main question is, will we see a long liquidation? Or will investors will other investors be comfortable carrying short positions over the weekend. One thing is for sure I would not be comfortable with the latter.
On the Natural Gas front the heat dome and bullish Gas Storage number was not enough to sustain the rally. With plenty of product that is moving at a record pace and a weak cash market the futures finally seem to be catching on. In the overnight electronic session the August Natural Gas is currently trading at 2.920 which is 2 cents lower. The trading range has been 2.954 to 2.919.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374