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
Happy Friday! We kickoff the day with CPI and Real Earnings at 7:30 A.M. followed by the much-anticipated Crop production USDA Supply/Demand data at 11:00 A.M. We did see an increase in volume with solid Export Sales yesterday heading into today’s report and more market participation is a welcome sight. Corn settled lower in yesterday’s action for the 3rd time this month even with current bullish fundamentals which I expect higher prices. Technically the charts say we can go either way as in a coin flip but a close over 375 basis September should wake up the echoes. In the overnight electronic session the September Corn is currently trading at 368 ¾ which is a ½ of a cent lower. The trading range has been 369 ½ to 367 ½.
On the Ethanol front the September contract posted a trade at 1.365 which is .005 lower. 1 contract traded and the market is currently showing 2 bids @ 1.361 and 1 offer @ 1.366 with growing Open Interest at 1.171 contracts.
On the Crude oil front we still have geo-political conflicts and shortages of Oil around the globe with new latest spat between Canada and Saudi Arabia. Amnesty International chimed in and said Saudi Arabia is one of the worst violators of human rights. My question is… Who’s number 1? Is it China, Iran, Qatar, Russia, Turkey Syria, Venezuela or Yemen? Just asking… These are the part of the reasons I would not want to hold a short position going into the weekend. In the overnight electronic session the September Crude Oil is currently trading at 6730 which is 49 points higher. The trading range has been 6734 to 6614.
On the Natural Gas front were trading lower after a neutral injection number on yesterday’s EIA Gas Storage data. In the overnight electronic session the September contract is currently trading at 2.925 which is 3 cents lower. The trading range has been 2.955 to 2.918. Weather patterns could shake this market higher but bearish forces continue to cast a pall on any upside.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374