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 kickoff the day with Producer Price Index (PPI) and Wholesale Trade at 7:30 A.M., EIA Energy Stocks at 9:30 A.M. and Dairy Product Sales at 2:00 P.M. On the Corn front President Trump and Chinese President Xi Jinping discussed ongoing trade issues on Tuesday, as both sides stand their ground on tariffs. The two leaders spoke after high level talks failed to break any ground last week. I am sure we will reach a consensus as we both need each other being the largest economies in the world. Corn plantings have been moving at a rapid pace, although today’s rains should slow the farmer’s momentum. In the overnight electronic session the July Corn is currently trading at 402 ¼ which is 1 cent lower. The trading range has been 404 ¼ to 402 ¼.
On the Ethanol front the White House was busy yesterday with talks with the Chinese President on tariffs effecting Grains and Ethanol imports, the exit of the nuke deal and President Trump had a close door briefing with the two Iowa senators supporting the Corn Lobby and senators from Pennsylvania and Texas concerned about refineries going bankrupt. They are attempting to set a stage where all arguments can be heard and come up with a viable solution. In the overnight electronic session the June Ethanol is currently trading at 1.470 which is .004 lower. The trading range has been 1.474 to 1.470. The market is currently showing 3 bids @ 1.469 and 1 offer @ 1.470. 9 contracts traded and Open Interest is at 1,074 contracts.
On the Crude Oil front the volatility in yesterday’s trading session with the fake news courtesy of the usual suspects drove the market down and the buy rumor sell fact is easier said than done. Although it turned out to be a golden buys the algorithms stepped on the market through support but the market quickly recovered. Last night’s API showed draws in Crude stocks of 1.85 million barrels, Gasoline draws of 2.055 million barrels, Distillates down a whopping 6.674 million barrels while Cushing showed builds of 1.653 million barrels. Also the exodus of the Iran Nuke Deal which was a bad deal and sanctions are another ingredient to propel this market to the next higher level. In the overnight electronic session the June Crude Oil is currently trading at 7077 which is 171 points higher. The trading range has been 7117 to 6985.
On the Natural Gas front the market just seems to continue to tread water on bearish news. In the overnight electronic session the June contract is currently trading at 2.747 which is 1 ½ of a cent higher. The trading range has been 2.759 to 2.733.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374