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
Busy first day of May starting the ADP Employment at 7:15 A.M., Construction Spending and ISM Manufacturing Index at 9:00 A.M., EIA Energy Stocks at 9:30 A.M. and at 2:00 P.M. we have the following, Cotton System, Dairy Product Sales, Fats & Oils and Grain Crushings. The FED will also make an announcement on Interest Rates which I do not seeing a move being made until the U.S.-China talks wrap up in a few weeks. If a deal is not reached with our Asian counterparts I would expect the FED to cut rates in the June meeting. We are also watching the events unfold in Venezuela with Cuba and Russia doing their best to keep the Maduro socialist regime in charge instead of the people of Venezuela who have been raped and robbed of their riches ever since Hugo Chavez became in charge and drove this thriving country down the drain. On the Corn front we have flood warnings all over the Mid-West and floods are getting worse in the waterlogged Plains and Mid-West. While further weather forecasts predict there will not be enough time to dry-out until the next system of rains pounce. Plantings are well below the ten-year average for this time while one must question when the fund take their foot off the selling accelerator. In the overnight electronic session the May Corn is currently trading at 356 which is 2 ¾ cents higher. The trading range has been 356 ½ to 353 ½.
On the Ethanol front the Nebraska Ethanol Board (NEB) submitted comments to the U.S. Environmental Protection Agency (EPA) urging the agency to issue a final rule on E15 allowing year round sales of Gasoline blended with 15% Ethanol. There hope is to have the rule in effect before the summer driving season which will also help retailers to sell E15 everywhere in the U.S. without changes in specific blends. In the overnight electronic session the June Ethanol is currently trading at 1.325 which is .001 higher. The trading range has been 1.331 to 1.318. 4 contracts traded and Open Interest is at 1,037 positions. The market is currently showing 1 bid @ 1.323 and 3 offers @ 1.329.
On the Crude Oil front the market is eyeballing whether Maduro stays in power in Venezuela at the request of Cuba and Russia or will he bailout like the Venezuelan people want so much. This will definitely add price volatility as what would be deemed bearish if the socialist regime is rebuked adding thicker Oil for Distillates that the market is in large demand at the moment. Last nights API Energy Stocks had investors wondering, Where did all these barrels of Oil come from? The Products were in line as to expectations and this morning EIA Energy Stocks will confirm or deny the large Crude Oil build. In the overnight electronic session the June Crude Oil is currently trading at 6350 which is 41 points lower. The trading range has been 6373 to 6308.
On the Natural Gas front the market is unfamiliar territory trading higher so far. In the overnight electronic session the June Natural Gas is currently trading at 2.595 which is 2 cents higher. The trading range has been 2.606 to 2.561.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374