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 this trading week with Export inspections at 10:00 A.M., Consumer Credit at 2:00 P.M. and Crop Progress at 3:00 P.M. On the Corn front Karen Braun with Thomson Reuters reported that despite the slow start to planting, the U.S. corn crop has entered July in one of the most mature states ever for this time of year. The speed of development does not exactly insure great yield outcomes, but highlights weather factoring in the coming months. As of July 1st 17% of U.S. Corn was in the silking stage. According to the USDA this is the second largest amount of Corn silking since 1981 and 9% ahead of the five-year average. The fastest July 1st silking was 25% in 2012. In the overnight electronic session the September Corn is currently trading at 356 which is 4 ¼ cents lower. The trading range has been 359 ¼ to 353 ½. Investors may keep their powder dry ahead of Thursday’s Export Sales, Crop Production and USDA Supply/Demand data.
On the Ethanol front the industry will not miss Scott Pruitt and the alleged olive branch big oil offered with higher octane levels seems to be shelved for now and we will most likely see more negotiations with the Renewable Fuels Standard. In the overnight electronic session the August Ethanol is currently trading at 1.430 which is .009 lower. The trading range has been 1.439 to 1.430. 2 contracts traded and Open Interest at 1,034 contracts. The market is currently showing 1 bid @ 1.426 and 2 offers @ 1.432.
On the Crude Oil front Alpha BBL analyzed storage tanks in Cushing, Oklahoma, Texas, Louisiana and Illinois. Crude Oil storage in Illinois and Louisiana rose while Texas and Cushing decreased. AlphaBBL’s estimate was a storage negative of 2.3 million barrels while the EIA estimate was 2.1 million barrels. Remnants of Tropical Storm is producing heavy rains and strong gusty winds over northeastern Caribbean Sea and the northern Leeward Islands. The disturbance is now moving west-northwestwardly. Investors are now seeing little chance to enter the Gulf of Mexico at this point. In the overnight electronic session the August Crude Oil is currently trading at 7394 which is 14 tics higher. The trading range has been 7428 to 7346.
On the Natural Gas front the market is trading lower in the overnight electronic session with the August contract currently trading at 2.833 which is 2 ½ cents lower. The trading range has been 2.865 to 2.823.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374