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 Advanced Durable Goods, Export Sales and Jobless Claims at 7:30 A.M., EIA Gas Storage at 9:30 A.M. The big news is the tariff or trade war or whatever you want to call it, Producers, Brokers and Investors are doing the happy dance alike as excitement of a win-win situation for everyone involved. In the immortal words of General George S. Patton, “America Loves A WINNER AND WILL NOT TOLERATE A LOSER!” The market has been galvanized by swift and effective negotiations between President Trump and Euro President Jean-Claude Juncker to reach a meeting of the minds and come closer to a resolution to these silly tariffs. Implementing and understanding and even playing field as chaotic weather stretching the entire globe.
On the Corn front the September contract is riding the Grain wave and is currently trading at 364 ¾ which is 5 ½ cents higher. The trading range has been 365 ¾ to 360 ¾.
On the Ethanol front the September contract is currently trading 1.445 which is .015 higher. The trading range has been 1.455 to 1.440. 15 contracts traded and the market is currently showing 2 bids @ 1.440 and 1 offer @ 1.446 with Open Interest at 1,209 contracts.
On the Crude Oil front same old story with tight supplies and the globe continues to consume at an all-time record pace. However, disinformation and geo-political factors has the market in chop mode. In the overnight electronic session the September Crude Oil is currently trading at 6900 which is 30 points lower. The trading range has been 6974 to 6892.
On the Natural Gas front the market received good news yesterday with the EU and U.S meeting of the minds which help this market with exports of LNG. Will this overshadow the bearish presence? Today we have the weekly EIA Gas Storage and the Thomson Reuters poll with 21 analysts participating expect builds anywhere from 29 bcf to 48 bcf with the median build of 36 bcf. This compares to the one-year build of 18 bcf and the five-year average build of 43 bcf. The August contract expires tomorrow and the September contract is currently trading at 2.756 which is unchanged. The trading range has been 2.779 to 2.751.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374