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 first Friday of August with Unemployment and U.S. Trade Balance at 7:30 A.M. followed by the ISM Non-Manufacturing Index at 9:00 A.M. China is retaliating to the new threat that President Donald Trump latest round of tariffs and sooner or later we will come to the understanding that Free Markets for Free Men work and the Global markets are taking notice. This is about fair trade more than intellectual trade thievery taking place. The Grains are coming in quiet this morning after a nice bull run. In the overnight electronic session the September Corn is currently trading at 367 which is a ¼ of a cent higher. The trading range has been 369 ¾ to 365 ¼. Hot and dry weather will be the focus as forecasters predict this heat dome for at least two weeks which portions of the Great Lakes region have not seen a sustained heat level the rest of the lower 48 have seen all summer. And investors will contemplate what yields we will see after the cards we have been dealt with drought or too much rain.
On the Ethanol front the August contract expires today and the September contract is currently trading at 1.433 which is .008 lower. The trading range has been 1.441 to 1.433. The market is currently showing 2 bids @ 1.432 and 3 offers @ 1.437 with 4 contracts traded and Open Interest at 995 contracts.
On the Crude Oil front we are trading headline to headline with the geo-political front I would not want to be short going into the weekend. Outside forces may want to disrupt fair trade whether it is Asia or the Middle-East and investors are waking up that the global market insatiable thirst for product. In the overnight electronic session the September Crude Oil is currently trading at 6892 which is 4 tics lower. The trading range has been 6924 to 6852.
On the Natural Gas front the heat wave moving to the Mid-West Great Lakes Region should propel premium in prices as the rest of the country has been reeling in these temperatures all summer long. In the overnight electronic session the September Natural Gas is currently trading at 2.841 which is 2 ½ cents higher. The trading range has been 2.844 to 2.814.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374