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 the Last Trading Day on May Grains today and also the API Energy Stocks at 3:30 P.M. After yesterday’s blistering action it seems the Grains may have finally priced in all the damage of this planting season and hopefully with the trade war with China. President Trump is scheduled to meet with President Xi at the G-20 meeting in Osaka Japan June 28th & 29th in which the President Trump expects the meeting will be fruitful. The Grains seemed to have a key reversal in yesterdays action and came back with although atrocious planting numbers they were still better than expected. Once again never doubt the U.S. farmer. In the overnight electronic session the July Corn is currently trading at 364 which is 7 ½ cents higher. The trading range has been 365 ¾ to 360 ¼.
The Ethanol market has joined the party as well with strong Energies and more talk that at some point we will reach a deal with China, setting the tables for a huge export market to that destination. In the overnight electronic session the June Ethanol is currently trading at 1.335 which is .030 higher. The trading range has been 1.337 to 1.317. 19 contracts traded and Open Interest is at 1,138 contracts. The market is currently showing 2 bids @ 1.335 and 1 offer @ 1.340. We may see the beginnings of rollovers to the July contract.
On the Crude Oil front there are many headlines that fundamentally should bolster prices. We have the API Energy Stocks at 3:30 P.M. and we are expecting draws in Crude of 3 million barrels and 2 million barrel draws in Gasoline and Distillates. Two Saudi Arabian oil tankers and a Norwegian ship were damaged over the weekend in the Persian Gulf in what Saudi Arabia claimed yesterday that it was an, “act of sabotage”. Iran and it’s proxies are the usual suspects. Also two oil pumping stations were hit with explosive-laden drones. Saudi Energy Minister Khalid Al Falih condemned the attacks claiming, “ The latest acts of terrorism and sabotage in the Arabian Gulf… not only a target of the Kingdom but also the security of Oil supplies to the world and global economy.” He further went on to say, “ These attacks prove again that it is important for us to face terrorist entities, including Houthi militias in Yemen that are backed by Iran. The U.S. is planning a response that could deploy 120,000 troops if Iran attacks again. This would be the largest deployment since the 2003 invasion of Iraq. The market is playing risk on and another fundamental switch is an Oil spill in the Houston Shipping Channel they may disrupt domestic supplies. In the overnight electronic session the June Crude Oil is currently trading at 6154 which is 50 points higher. The trading range has been 6200 to 6069.
On the Natural Gas front the market is following suit with many commodity sectors and trading higher. In the overnight electronic session the June Natural Gas is currently trading at 2.651 which is 3 cents higher. The trading range has been 2.670 to 2.622.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374