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
The Grains gapped higher with follow-through as more rains, cooler temperatures and the Crop Progress report showed we should have a lot more premium in this complex to the farmers delight. This long overdue delayed reaction runaway is making sense finally. More weather concerns hampering plantings and keeping the fields pretty much inactive will further pressure any time for any chance to grow a healthy crop especially without Mother Nature’s cooperation. In the overnight electronic session the July Corn is currently trading at 432 ¾ which is 12 ½ cents higher. The trading range has been 438 to 429 ¼.
On the Ethanol front the market is following the Corn lead regardless of the pressure on the Energy sector which is following the Stock Market retreat as bad news on the trade talks once again scared off investors. Hmm… This seems to be a broken record to the reactions of the U.S.-China trade talks. If China seeks an honest deal there will be one and it will only be reached by a fair and even trade agreement. In the overnight electronic session the July Ethanol is currently trading at 1.545 which is .053 higher. The trading range has been 1.568 to 1.537. 78 contracts traded and Open Interest has climbed to 901 positions. The market is currently showing 5 bids @ 1.538 and 2 offers @ 1.544.
On the Crude Oil front the market is in a technical selloff following allegedly fundamental news that is selling off the Stock Market. This news of another hurdle in the trade talks should not define what a great economy that was created starting a little of 2 years ago or so. If the Chinese want to negotiate in good faith we will have a deal. If they do not want to. We will wait until an even playing field is reached. If not we wait. At 3:30 P.M. we have the weekly API Energy Stocks and I anticipate larger draws because we have Memorial Day which is the start of the summertime driving season, demand is big with an excellent economy, disruption in the Houston Shipping Channel and OPEC production cuts which will eventually weigh on prices. In the overnight electronic session the July Crude Oil is currently trading at 5771 which is 143 points lower. The trading range has been 5909 to 5714.
On the Natural Gas front we have the June contract expiring today while the market is showing a little pop this morning. In the overnight electronic session the July Natural Gas is currently trading at 2.624 which is 4 cents higher. The trading range has been 2.642 to 2.580.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374