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 this Friday with Advanced Durable Goods at 7:30 A.M. and an earlier than normal Cattle on Feed report to be released at 11:00 A.M as opposed to the regular time of 2:00 P.M. The Grain complex rallied on news that China would be buying Soybeans and other commodities to downplay any type of trade war. The complex was keen to the news but faltered later in the trading session. On the Corn front the July contract is currently trading at 405 ½ which is 1 ¼ of a cent higher. The trading range has been 406 ½ to 403 ¼. Farmers should be near completion of plantings in some areas in the Mid-West.
On the Ethanol front the June Open Interest dropped to 285 contracts so we will switch to the July contract that is currently trading at 1.517 which is .005 lower. The trading range has been 1.535 to 1.528. 49 contracts traded and Open Interest is at 893 contracts. The market is currently showing 2 bids @ 1.518 and 1 offer @ 1.523.
On the Crude Oil front news of the cancellation of the North Korean summit had a bearish tone in yesterday’s trading session and we had a continuation in today’s session. Pile on news from Saudi Energy Minister Khalid Al-Falih that Saudi Aramco IPO will most likely occur in 2019. This delay also hit the market further which gave investors jitters and the market is overreacting and in panic mode. In the overnight electronic session the July contract is currently trading at 6878 which is 193 points lower. The trading range has been 7080 to 6856.
On the Natural Gas front the market is currently trading at 2.945 which is a ½ of a cent higher. The trading range has been 2.959 to 2.925. No new recommendations at the moment.
Happy Memorial Day!
And God Bless the Brave Men and Woman who served our country and liberated so many other countries.
Questions? Ask Dan Flynn today at 312-264-4374