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
After lackluster earnings we look ahead to 1st Quarter GDP. May Natural Gas expires today with May Grain and Treasury Options. On the Corn front we are actually higher in the overnight electronic session with Mother Nature and Old Man Winter back at it again with snows forecasted in Minnesota, Wisconsin, Illinois and Iowa tomorrow. The window for plantings is definitely closing rapidly for an expected good to excellent crop. Trade talks between the U.S. and China resume the next week in Beijing. In the overnight electronic session the May Corn is currently trading at 349 ¼ which is 1 ¾ of a cent higher. The trading range has been 349 ½ to 347.
On the Ethanol front more economic woes are squeezing earnings and we could see more Ethanol plants for sale. A so-called glut in the market and weather has made delivery to the customer difficult to transport in certain areas with the desired blend in that area. In the overnight electronic session the June Ethanol is currently trading at 1.332 which is .009 higher. The trading range has been 1.333 to 1.330 with 14 contracts traded and Open Interest is at 1,167 contracts. The market is currently showing 1 bid @ 1.334 and 1 offer @ 1.338.
On the Crude Oil front the market sold off hard 10 minutes before yesterday’s 1:30 close. Maybe investors were keen on Chevron and Exxon earnings before this mornings bell? In the overnight electronic session the bears have had it again further driving prices lower until a strong GDP number changed the psychology of the market with key support of $63 holding. The June contract is currently trading at 6424 which is 97 points lower. The trading range has been 6518 to 6361.
On the Natural Gas front the market remains in limbo with the political games continuing with pipelines that make transportation of LNG on the rails which is not the most economic and environmental friendly way to ship. The May contract expires today and in the overnight electronic session the June contract is currently trading at 2.563 which is 1 ½ of a cent higher. The trading range has been 2.568 to 2.517.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374