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
With investors back to watching the latest tariff talks in the upcoming trade war, President Trump is confident that and stated it is working and coupled with the tax cuts and a meeting of the minds with China we could see our GDP grow another 5%. Today’s reports are EIA Energy Stocks at 9:30 A.M. and Dairy Product Sales at 2:00 P.M. On the Corn front weather will be a key factor as Corn and Soybeans maturity is well above the five-year average and forecast for hot and dry weather and some forecast for an early frost could cause extreme stress as the crop may look green but will have to tend with a lot of stress that too much rains in some areas could thwart yields come harvest and the stress is starting to show early. In the overnight electronic session the September Corn is currently trading at
372 ½ which is 1 ½ of a cent higher. The trading range has been 372 ¾ to 370.
On the Ethanol front the September contract is currently trading at 1.413 which is .008 lower. The trading range has been 1.414 to 1.403 with 6 contracts changing hands. The market is currently showing 1 bid @ 1.411 and 1 offer @ 1.416 with a pick-up on Open Interest at 1,040 contracts.
On the Crude Oil front we had a mixed bag of tricks on last night’s API Energy Stocks showing Crude Oil with a whopping draw of 6 million barrels however Gasoline stocks showed a surprisingly huge build of 3.1 million barrels, Distillates showed builds of 1.8 million barrels and Cushing was down 576 barrels. These numbers were all over the board and pressuring the complex before the EIA Energy Stocks confirms or denies the accuracy of the API data. In the overnight electronic session the September Crude Oil is currently trading at 6850 which 67 points lower. The trading range has been 6937 to 6837.
On the Natural Gas front the September contract is currently trading at 2.902 which is a ½ of a cent higher. The trading range has been 2.905 to 2.884. Extreme heat and whispers that Goldman Sach’s are in talks to buy a tanker of Liquid Natural Gas (LNG). They may want to muscle in on a great opportunity according to Liz Hoffman and Christopher M. Matthews of the Wall Street Journal as they wrote this morning, Along a narrow inlet of the Gulf of Mexico, 2.8 billion cubic feet (BCF) of Natural Gas rolls through the Sabine Pass Plant, where it is cooled into a liquid and loaded onto tankers bound for Asia and South America.
Have a Great Trading Day!
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