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
Results of the USDA Supply/Demand data was overall not impressive to bullish investors. Looking at World Grain Ending Stocks and the U.S. Grain Ending Stocks this market is trading weather and Mother Nature has thrown curveballs and sliders which the batter or investors have a hard time hitting. Heavy rains heading into the weekend which could delay plantings until it clears forecasted on Tuesday. Although the farmers are working at a rapid pace when the fields dry we may have extreme hot and dry weather. In the overnight electronic session the July Corn is currently trading at 399 which is 3 cents lower. The trading range has been 394 ¾ to 393 ½. If you look at the drought monitor when the rains clear we could have an extreme change in weather patterns and it is not too late yet but with Argentina’s crop where it is at there is not a lot of room for margin of error and weather will be the deciding factor.
On the Ethanol front the June contract is currently trading at 1.460 which is .004 lower. The trading range has been 1.465 to 1.460. The market traded 4 contracts and is currently showing undisclosed bids @ 1.458 and 1 offer @ 1.460. Open Interest continues to decline at 784 contracts while July’s Open Interest is rising to 671 contracts.
On the Crude Oil front the market is in chop mode waiting for the next headline. The market is in overbought mode but you cannot fight the fundamentals and geo-political fears will be supportive to higher prices. In the overnight electronic session the June Crude Oil is currently trading at 7141 which is 5 tics higher. The trading range has been 7163 to 7114. I look at for a late rally as investors weigh the risk of the powder keg in the Middle-East and do not want to hold a short position going into the weekend.
On the Natural gas front the futures market continues to defy logic. The market is always right even if it makes no sense to investors. In the overnight electronic session the June Natural Gas is currently trading at 2.809 which is a ½ of a cent lower. The trading range has been 2.817 to 2.798.
Have a Great Trading Day &
HAPPY MOTHERS DAY !!!
Questions? Ask Dan Flynn today at 312-264-4374