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
To honor the 75th Anniversary of the D-Day Invasion our Brave Men crashed the beaches of Normandy and another tribute to the 77th Anniversary of the victory in the Battle of Wake Island after a victory a month earlier in the Battle of Coral Sea that the U.S. saved our Australian allies their homeland and shifted the momentum in the Pacific theatre once and for all. God Bless our Men & Woman that put their lives on the line for Freedom!
We kickoff the day with Export Sales, Jobless Claims and U.S. Trade Balance at 7:30 A.M. followed by the EIA Gas Storage at 9:30 A.M. On the Corn front a change in the long-range weather forecast for the better as far as rains are concerned put a bearish spin on the market but this is still too little too late to be considered bearish as far as plantings go. Smithfield Foods importing South American Corn because of shortages here at this time even further ramped up bearish fever. However, for the U.S. to be importing Corn at this time? To me that is unheard of. Almost like an Eskimo importing ice cubes. In the big picture these are bullish signs in my thinking. In the overnight electronic session the July Corn is currently trading at 409 ½ which is 5 ¼ cents lower. The trading range has been 418 to 407.
On the Ethanol front the July contract is currently trading at 1.459 which is .019 lower. The trading range has been 1.466 to 1.459. The market is currently showing 2 bids @ 1.459 and 2 offers @ 1.471. 15 contracts changed hands and Open Interest has declined to 590 positions.
On the Crude Oil front the weekly inventory numbers were off again. I would not necessarily say in a bullish sign but not as bearish the headline has become in the marketplace. The people counting barrels are counting barrels and compensating for numbers that were wrong before. My question is… What is the basis of your new mathematical equation in counting barrels? Let’s face it folks Russia and Saudi Arabia do not like Oil prices this low nor do our U.S. producers in the Oil Patch. Eventually we will see demand climb and wonder where is the so-called surplus of product and where did it go when we need it. In the overnight electronic session the July Crude Oil is currently trading at 5158 which is 10 points lower. The trading range has been 5225 to 5127.
On the Natural Gas front we have the EIA Gas Storage data to be released at 9:30 A.M. The Thomson Reuters poll with 19 analysts participating expect builds anywhere from 104 bcf to 124 bcf with the average build of 111 bcf. This compares to the one-year build of 95 bcf and the five-year average increase of 92 bcf. In the overnight electronic session the July Natural Gas is currently trading at 2.368 which is 1 cent lower. The trading range has been 2.383 to 2.360.
Let’s Not Forget Our Heroes Who Fought For Our Freedoms!
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374