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
After yesterday’s USDA Crop Production Supply/Demand data we are focusing on weather and a U.S. government forecaster was quoted Thursday that the emergence of the El Nino pattern increased to 65% during the fall and 70% during winter 2018-19. There are private forecasters predicting an early frost as early as September with all of the volcanic activity. In the overnight electronic session the September Corn is currently trading at 342 ½ which is 3 ¼ cents lower. The trading range has been 346 ½ to 341 ½.
On the Ethanol front the August contract the August contract is currently trading at 1.410 which is .001 lower. The trading range has been 1.413 to 1.410. 7 contracts traded and Open Interest has fallen to 952 contracts. The market is currently showing 1 bid @ 1.401 and 1 offer @ 1.407.
On the Crude Oil front were in chop mode and shortages will be a reality in the coming months. Some analysts are predicting the top is in. However, I believe that they are gravely mistaken. Globally we will be consuming more Oil in a day than producing which should trigger an explosion to the upside in this boom or bust industry and create another super cycle. In the overnight electronic session the August Crude Oil is currently trading at 7072 which is 39 points higher. The trading range has been 7073 to 6984.
On the Natural Gas front the market is struggling to sustain any rally even with the impeding heat wave. There is plenty of product and a weak cash market which seems to thwart any price spike and is signaling to investors to sell them in the hole. In the overnight electronic session the August Natural Gas is currently trading at 2.792 which is a ½ of a cent lower. The trading range has been 2.812 to 2.777.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374