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 of the day with Lael Brainard a member of the FED Board of Governors speaking at 8:30 A.M., EIA Energy Stocks at 9:30 A.M and Dairy Product Sales at 2:00 P.M. As one of my farming customers predicted last year that we will have a colder and wetter growing season due to lack of intensity of Sun Spots. This ancient study goes back to the Chinese, Book of Changes, dating back to 800 B.C. The first mention in English literature was 300 B.C. This is a far cry from Global Warming or Climate Change. The greenhouse effect that is talked about in these two so-called studies began in the early 19th century and Global Warming in the 1960’s later changed to Climate Change because those who pushed it to put fear in the voters such as Al Gore speech years ago in Minnesota was called off because of an ice storm. It seems the socialist are pushing this even after a resounding defeat 74 years ago. Once again weather wise the farmers can’t get a break with floods and rains continuing to pummel the Plains and Mid-West also with cold temperatures keeping the ground to cold and frozen in some areas to cultivate. Rains are supposed to diminish Friday and cooler temperatures yet are to take the place. The Chinese are back in Washington tomorrow and they must beat the Friday shot clock or tariffs will rise to 25%. Treasury Secretary Steven Mnuchin said the Chinese walked back on concessions it already made. They were hoping this administration would turn its head as previous administrations had. Let’s face it folks we are in an economic war with the Chinese, and for now we hold the cards and the chips. Which could change later and put the U.S. in a big disadvantage in the future. Vice Premier Liu He will lead a Chinese delegation in talks tomorrow and Friday in hopes of making a last second deal. In the overnight electronic session the July Corn is currently trading at 365 which is 1 ½ of a cent lower. The trading range has been 368 ¼ to 363 ¼.
On the Ethanol front the June contract is currently trading at 1.333 which is .001 higher. The trading range has been 1.333 to 1.332 with 2 contracts traded and Open Interest at 1,071 positions. The market is currently showing 1 bid @ 1.316 and 1 offer @ 1.330.
On the Crude Oil front last nights API Energy Stocks was a bit bearish to Crude but friendly to products. The Crude showed builds of 2.806 million barrels, Cushing builds of 618 thousand barrels, Gasoline Stocks had draws of 2.833 million barrels which will not be good for drivers filling up at the pump. Distillates were down 834 thousand barrels, however this bullish number and tight supplies have a lesser impact with the farming community not using as much Diesel because of bad weather keeping them way behind in the fields. The U.S. has ramped up sending more bomber assets to the Middle East this time sending B-52 bombers as Iranian chatter and chirping continues. Overall the market is holding up pretty good with the Stock Market getting slammed. We have the EIA data at 9:30 A.M and we will see if their numbers coincide with last nights API data. In the overnight electronic session the June Crude Oil is currently trading at 6155 which is 15 points higher. The trading range has been 6210 to 6107.
On the Natural Gas front the market is up again for the second straight day in a row. In the overnight electronic session the June contract is currently trading at 2.567 which is 3 cents higher. The trading range has been 2.574 to 2.536.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374