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 off the last day of May with Export Sales and Personal Income at 7:30 A.M. followed by Chicago PMI at 9:00 A.M. On the Corn front the International Grains Council (IGC) cut it’s forecast for world Corn production by 7 million tonnes. You would think this news and a rainy June forecast would have this market sailing but President Trump slapped a 5% tariff on all Mexican imports, effective June 10th, pressuring Mexico to crack down on the flood of Central Americans trying to cross the U.S. border illegally. The President said the percentage would gradually increase to 25%, until the illegal immigration problem is remedied. This could be a game changer in the United States-Mexico-Canada Agreement. The market is reacting to everything that the fragile negotiations on fair and free trade hang in the balance. In the overnight electronic session the July Corn is currently trading at 425 ¼ which is 11 cents lower. The trading range has been 437 ½ to 423 ¼.
On the Ethanol front the Trump administration is set to announce as early as today the end of summertime ban on E15 to help farmers in this time. In the overnight electronic session the July Ethanol is currently trading at 1.505 which is .037 lower. The trading range has been 1.534 to 1.505. The market is currently showing 1 bid @ 1.496 and 3 offers @ 1.504 with 33 contracts traded and Open Interest at 871 contracts.
On the Crude Oil front waivers sunk this market last October and recently recovered. Now the mere hint that some waivers may be granted to China and India to import Iranian Crude has this market shaking a little bit. This is a far cry from zero Iranian exports and this could be just another shake and bake headline before reality sets in. In the overnight electronic session the July Crude Oil is currently trading at 5533 which is 126 points lower. The trading range has been 5661 to 5483.
On the Natural Gas front yesterday’s Gas Storage data was bearish and the market is attempting to hold support at the 2.500 level. In the overnight electronic session the July Natural Gas is currently trading at 2.543 which is .004 lower. The trading rage has been 2.573 to 2.542.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374