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 kickoff this Friday with Consumer Price Index (CPI) and Real Earnings at 7:30 A.M. followed by Crop Production USDA Supply/Demand at 11:00 A.M. The markets are in wondering if China will have a last-minute epiphany to get a fair trade deal done to avoid further tariffs. President Trump is talking tough and said the U.S. will boost it’s purchases of domestic farm products to offset lost demand from China. He further went on to say we will use are excess money from tariffs to buy American agriculture products in larger amounts that China ever did. This is basic economics that will shape free trade now and in the future. In the overnight electronic session the July Corn is currently trading at 352 ½ which is ¾ of a cent lower. The trading range has been 355 ½ to 352 ½.
On the Ethanol front the June contract is currently trading at 1.292 which is .008 lower. The trading range has been 1.301 to 1.291. 10 contracts have traded and Open Interest is at 1,110 positions. The market is currently showing 9 bids @ 1.292 and 1 offer @ 1.302. Which is a wide-spread given the uncertainty of todays events that will lead to the future.
On the Crude Oil front the markets remain strong with all the geo-political factors have investors on edge especially as we head into the summertime driving season that the historical trend starts from Memorial Day and ends around Labor Day. More China stimulus is on the table as well as trade talks seem in doubt ahead of today’s deadline. In the overnight electronic session the June Crude Oil is currently trading at 6173 which is 3 tics higher. The trading range has been 6249 to 6153.
On the Natural Gas front the market is wavering if the bottom is really in. Unlike the Corn market where funds keep piling on shorts only to hurt producers. In the overnight electronic session the June Natural Gas is currently trading at 2.603 which is .008 higher. The trading range has been 2.605 to 2.574.
Have a Great Trading Day!
ThanksQuestions? Ask Dan Flynn today at 312-264-4374