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
This morning we start the day with Advanced Durable Goods 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 the Grain complex is once again higher in the overnight electronic session only to see pressure before the Open Outcry session. Weather has been a factor and whispers that this crop is resonating early to produce good to excellent yields. The South American crop is strained and getting worse ratings as the days go by which makes our marketplace more attractive for buyers. In the overnight electronic session the July Corn is currently trading at 354 which is 1 ½ of a cent higher. The trading range has been 356 to 351 1/2,. First Notice Day on the July contract is Friday so speculators should be out of the contract by Thursdays close.
On the Ethanol front EPA administrator Scott Pruitt is tip-toeing through the mine fields as he attempts to please the Corn Lobby and Oil industry with small refineries going out of business trying to keep up with the biofuel blends mandated by the Renewable Fuel Standard (RFS). The blending proposal for 2019 would be up 3% versus 2018. In the overnight electronic session the August Ethanol is currently trading at 1.423 which is .006 higher. The trading range has been 1.473 to 1.421. 31 trades passed hands and Open Interest continues to climb to 965 contracts. The market is currently showing 1 bid @ 1.423 and 2 offers @ 1.427.
On the Crude Oil front the Trump administration put foreign oil companies on notice that by November 4th if they take a drop of oil from Iran more sanctions will be on the way and they would be hard pressed to do business with the U.S. Also Saudi Arabia said they will be producing more oil to be put in storage as they anticipate global shortfalls in the future. Last nights API showed a whopping draw of 9.2 million barrels and Cushing, Oklahoma showed draws of 1.7 million barrels. In the overnight electronic session the August Crude Oil is currently trading at 7137 which is 84 points higher. The trading range has been 7140 to 7056.
On the Natural Gas front temperatures rising are also rising premiums in the market. In the overnight electronic session the August contract is currently trading at 2.991 which is 6 cents higher. The trading range has been 2.997 to 2.941.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374