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 day with Producer Price Index (PPI) at 7 :30 A.M., Crop Production USDA Supply/Demand at 11:00 A.M. and API Energy Stocks at 3:30 P.M. On the Corn front the Crop Progress left more uncertainty in the marketplace and left farmers with losing faith further in the USDA numbers. Even with better weather for late planting we still do not have our head above water. The funds stopped buying when dryer weather was called for and the market took a hit the last two trading sessions and the overall market is currently undervalued. In the overnight electronic session the July Corn is currently trading at 411 ¼ which is 4 ½ cents lower. The trading range has been 415 to 410 ½.
On the Ethanol front the July contract is currently trading at 1.470 which is .003 lower. The trading range has been 1.476 to 1.470. The market is currently showing 1 bid @ 1.468 and 1 offer @ 1.475 with 9 contracts trade and Open Interest waning to 561 contracts.
On the Crude Oil front we have the weekly API Energy Stocks that are expecting builds in Cushing, Oklahoma again. The only thought that this can be attributed to is train cars being counted with product and product coming from Canada to North Dakota and being railed to Cushing because North Dakota does not have the capacity to hold these large quantities. I do expect demand to pick up heading into the 4th of July weekend and we can expect to pay higher at the pump and people in Illinois will be upset that the new governor they voted in just gave us a brand spankin new Gasoline tax. Ah our legislatures in Illinois the Peoples Republic of Springfield raise taxes and steal more from the state. In the overnight electronic session the July Crude Oil is currently trading at 5381 which is 55 points higher. The trading range has been 5398 to 5328.
On the Natural Gas front the market seems to be waiting on an area to move. The Natural Gas has been on a downward course and Thursday’s EIA Gas Storage could lead to another bear run. In the overnight electronic session the July contract is currently trading at 2.372 which is 1 ½ of a cent higher. The trading range has been 2.376 to 2.355.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374