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 have Export Inspections at 10:00 A.M. and Crop Progress at 3:00 P.M. As we continue talks in the trade war with China some speculate that China has a game plan and was lying in wait to see the U.S. response as they purposely reneged on their commitments made and triggered President Trump’s response to up the ante on tariffs. They thought they had nothing to lose so they fired the first salvo to see if the U.S. was meek, weak and or humble. Now they want to kick the can down the road to 2020 hoping for a moderate or weaker President to cave into their demands. I do not believe the Founding Fathers intentions was to make Free Enterprise work this way. I do believe like it or not, this country is the last bastion of Free Trade. This is a heavy toll for farmers as the weather and trade agreements are not helping their way of life. And in the words of the Great Communicator Ronald Reagan, we will negotiate, sacrifice but we Will Not Surrender To It! Now or Forever! We Our Americans!
As we speak on this setback the wires are going crazy with news that two Saudi Oil Tankers, one bound for the U.S. were sabotaged of the coast of the United Arab Emirates (UAE). The tankers suffered “significant damage” and guess who the culprit is? The usual suspects? Iran? Ya Think? The sanctions are working and the money given to them from a past administration has spent the money on a spending spree to spread terrorism. Now it is a time for choosing, do we choose that we want Free Trade and not have tyrants sole GDP is related to one commodity other than terrorism to their dictatorship principles. Will we appease them, and expect all of our troubles will go away? History has a way of repeating itself and if there is one person out there can tell me socialism works, please name those countries. On the Corn front this week’s forecast for sunny skies and warmer temperatures maybe Mother Nature will be on our side for once. Several issues keep hammering the market lower as several hot issues were not addressed in the prior administration. So they must be addressed now. As negotiations go down the road we will be stronger and more resilient in the future without the short-term fixes. In the overnight electronic session the July Corn is currently trading at 344 ¾ which is 7 cents lower. The trading range has been 351 ¼ to 344 ½. Hopefully, the markets will realize that a strong U.S. economy will not blink to any given threat.
On the Ethanol front the market is dragging lower following suit with the Corn market. There are Gas Stations selling Gasoline without any Ethanol blends which because of a terrible growing season and weather we are experiencing has weighed in on transportation issues and Chinese demand in doubt as we continue to negotiate an even playing field with the goal posts the same. In the overnight electronic session the June Ethanol is currently trading at 1.277 which is .023 lower. The trading range has been 1.297 to 1.276. The market is currently showing 1 bid @ 1.273 and 1 offer @ 1.278.
On the Crude Oil front the market is trading higher on threats from Iran regardless of how the other markets are getting hammered with the trade agreement yet to be reached. The sanctions are working and Iran and their mullahs have their provocations in doubt. Do you really think this a good deal attacking the Free World? In the overnight electronic session the June Crude Oil is currently trading at 6313 which is 147 points higher. The trading range has been 6329 to 6121.
On the Natural Gas front in the early going the market is showing a reversal of fortunes as the market tries to rally from last week’s lows. In the overnight electronic session the June contract is currently trading at 2.649 which is 3 cents higher. The trading range has been 2.652 to 2.598.
Have A Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374