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 Export Sales and Jobless Claims at 7:30 A.M., Factory Orders at 9:00 A.M., EIA Gas Storage at 9:30 A.M. and Dairy Product Sales at 2:00 P.M. On the Corn front we sold off with a fresh new batch of tariffs being spoken with China in the latest round of our trade dispute which put weight on the Soybean market and the Corn followed suit as weather forecast are expecting hot and dry weather in the coming days. In the overnight electronic session the September Corn is currently trading at 368 which is 3 cents higher. The trading range has been 368 ¾ to 364 ¾. China does not import enough Corn to make it matter, however if they are serious about going to an Ethanol infrastructure in the next couple of years this could be an impact as they will need this commodity. If investors are worried about Soybeans in the short-term if China does not import Soybeans from the U.S. they will need to go through a third-party and the EU would gladly satisfy their needs.
On the Ethanol front the August contract is set to expire tomorrow while the September contract is currently trading at 1.442 which is .001 higher. The trading range has been 1.442 to 1.435. We had an active overnight electronic session with 34 contracts changing hands and the market is currently showing 2 bids @ 1.443 and 1 offer @ 1.443 with Open Interest at 989 contracts.
On the Crude Oil front I hate to sound like a broken record but we are trading headline to headline with the new threat of more than doubling down on China if they don’t understand they will not win this tit-for-tat escalation in are trade dispute and stealing of our intellectual property. This has investors concerned but as usual the market is overreacting. In the overnight electronic session the September Crude Oil is currently trading at 6724 which is 42 points lower. The trading range has been 6815 to 6692.
On the Natural Gas front we have the weekly EIA Gas Storage data today at 9:30 A.M. which we are expecting an injection build of 44 bcf. The futures market is holding in check currently trading at 2.753 which is a ½ of a cent lower. The trading range has been 2.767 to 2.740. We could see a weather premium spike heading into the weekend.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374