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 the first trading day of June with Construction Spending and ISM Manufacturing Index at 9:00 A.M., Export Inspections at 10:00 A.M., Cotton System, Fats & Oils and Grain Crushings at 2:00 P.M. followed by Crop Progress at 3:00 P.M. It seems over the weekend both China and Mexico reached out to further talks with the U.S. as the tariffs are coming closer to reality and the U.S. wants talks in good faith and will not cave in on crucial policy changes that will make a fair deal. We are expecting a dry Monday in Illinois today but wet weather on Tuesday. There are rains in the Plains and South with the Long Range Forecast calling for a wet June. In the overnight electronic session the July Corn is currently trading at 427 ½ which is a ½ of a cent higher. The trading range has been 429 ¼ to 422 ¼.
On the Ethanol front the July contract is currently trading at 1.524 which is .011 higher. The trading range has been 1.532 to 1.482. The market is currently showing 2 bids @ 1.514 and 3 offers @ 1.524 with 30 contracts changing hands and Open Interest at 776 positions.
On the Crude Oil front we came in higher even with the weight of a weak Stock Market due to trade fears once again and the old news of Brexit will not go away with the European Union threatening fines to do so. I expect more volatility this week while the Russians and Saudi’s remain firm on Production cuts. Waivers to China and India on Iranian Crude Oil imports are not yet confirmed and just here say at the moment. In the overnight electronic session the July Crude Oil ids currently trading at 5440 which is 90 points higher. The trading range has been 5463 to 5211.
On the Natural Gas front the market remains weak after last Thursday’s bearish EIA Gas Storage data. In the overnight electronic session the July contract is currently trading at 2.409 which is 4 ½ cents lower. The trading range has been 2.475 to 2.407 and sinking fast as I write.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374