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
The news that a joint announcement with Chinese and U.S. officials had traders thinking we made headway in the tariff talks and sparked a rally late in yesterday’s trading session. The actual announcement that we are still billions of dollars apart but are still negotiating which put the complex in retreat mode and the market is giving back all the gains. Also news that Chinese nationals fired lasers on U.S. military aircraft near a military base in east Africa, injuring several pilots. Pentagon Press Secretary Dana White made diplomatic protests to the Chinese government over several recent incidents of laser firings near China’s first overseas military base at Djibouti. White went on about the incidents, “there were more than two but less than ten”. Reported by Bill Gertz with the Washington Free Beacon. In the overnight electronic session the July Corn is currently trading at 406 ½ which is 1 ½ of a cent lower. The trading range has been 408 ¼ to 405 ¾. On the Ethanol front the June contract is currently trading at 1.479 which is .007 lower. The trading range has been 1.496 to 1.479. The market is currently showing 1 bid @ 1.482 and 2 offers @ 1.486. 3 contracts traded and Open Interest is at 853 contracts. The meeting on waivers for the Renewable Fuel Standard (RFS) is scheduled for early next week. On the Crude Oil front the Iranian Nuclear deal has the market on edge as the market rallied when it was called to our attention that the Iranians may restart their Fordo nuclear facility. Not many investors will want to carry a short position going into the weekend. In the overnight electronic the June Crude Oil is currently trading at 6865 which is 22 points higher. The trading range has been 6886 to 6812. All is quiet on the Natural Gas front with the June contract currently trading at 2.728 which is .002 of a cent higher. The trading range has been 2.741 to 2.715. Futures are still premium to cash.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374