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 we kickoff the first Friday of the month with Export Sales, Unemployment and U.S. Trade Balance at 7:30 A.M. followed by EIA Gas Storage at 9:30 A.M. U.S._ China trade war began at midnight with the opening salvo’s be shot back and forth with tariffs that will go into effect in two weeks. EPA chief Scot Pruitt resigned after a laundry list of controversial moves such as allegedly using government funds to purchase a $43,000 sound proof phone booth, enlisting an official aide to help his wife get permission to open a Chick-fil-A restaurant. The former Oklahoma attorney general is subject to 13 federal investigations. Pruitt’s replacement is Interim chief Andrew Wheeler, a former coal lobbyist. This may or may not be a good thing with Big Corn and Big Oil were making strides of negotiating a deal that would benefit both sides after decades of discord. In the overnight electronic session the August Ethanol posted a trade at 1.423 which is unchanged. 2 contracts traded and the market is currently showing 1 bid @ 1.423 and 5 offers @ 1.426 with Open Interest at 1,034 contracts.
On the Corn front the market was pretty quiet with China tariff talk and the Pruitt resignation. In the overnight electronic session the September Corn is currently trading at 352 ½ which is ¼ of a cent higher. The trading range has been 352 ½ to 349 ½.
On the Crude Oil front another target of Chinese tariffs traded lower in the overnight electronic session. Hopefully we can go back to the negotiating table and this will be short-lived but the duties currently imposed is highway robbery on are trade partners. The August Crude Oil is currently trading at 7248 which is 46 points lower. The trading range has 7332 to 7218.
On the Natural Gas front Tropical Storm Beryl is located at 10.6N and 45.1W with maximum sustained winds at 65 knots and currently moving west at 12 knots. This has the attention of refinery states in the Gulf of Mexico. We also have the EIA Gas Storage report today. In the overnight electronic session the August Natural Gas is currently trading at 2.847 which is 1 cent higher. The trading range has been 2.852 to 2.824.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374