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 start off the busy morning with Advanced Durable Goods, Export Sales, 2nd Quarter GDP and Jobless Claims at 7:30 A.M. Followed by EIA Gas Storage at 9:30 A.M. and Hogs & Pigs at 2:00 P.M. On the Corn front we have been seeing some good sales with Mexico a major purchaser which counters stalled NAFTA talks with Canada. We also have weather forecast of cooler rainy weather that could slow harvest and creating some interesting price swings. In the overnight electronic session the December Corn is currently trading at 362 which is 1 cent lower. The trading range has been 363 to 361 ¼.
On the Ethanol front there were no trades posted in the overnight electronic session. Investors are banking on exports to be on the rise and also expect a new equation policy on this Corn based product. The November contract settled at 1.273 and is currently showing 1 bid @ 1.291 and 1 offer @ 1.294 with Open Interest at 1,712 contracts.
On the Crude Oil front the market regained his legs after a selloff and now the market looks poised to test $73 a barrel. In the overnight electronic session the November Crude Oil is currently trading at 7234 which is 77 points higher. The trading range has been 7260 to 7197.
On the Natural Gas front the market is waiting for the EIA Gas Storage data. The Reuters poll with 22 analysts participating expect injection builds anywhere from 52 bcf to 76 bcf with the median build of 62 bcf. This compares to the one-year injection build of 44 bcf and the five-year average of 84 bcf. In the overnight electronic session the November contract is currently trading at 2.985 which is a ½ of a cent higher. The trading range has been 2.989 to 2.963.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374