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
Two Oil tankers attacked in the Gulf of Oman near the Strait of Hormuz. The U.S. Navy’s Bahrain-based Fifth Fleet was assisting the tankers in the Gulf after receiving two separate distress calls at 6:12 A.M. local time and 7:00 A.M., Joshua Frey of the Fifth Fleet said the Fleet did not blame anyone for the attack. The United Kingdom Maritime Trade Operations which is an arm of the British Navy had put out an alert and urged “extreme caution”, amid U.S.-Iran tensions. It seems one tanker was torpedoed and one was a magnetic mine. This comes after last months attacks on four tankers in which Saudi Arabia and the U.S. blamed Iran and of course Iran denied. And denial is not just a river in Egypt. The attacks also came a day after Yemen’s Iran-aligned Houthi’s fired a missile on an airport in Saudi Arabia, injuring 26 people and a drone strike last month on Saudi Oil pumping stations. This has the fingerprints of Iran and their terrorist proxies all over it and their DNA will come out. As for all other Free Trade Countries with Merchant Marines that want to travel international waters unabated, let’s stand together! And to Iran and your proxies, Oh give me a reason!
This put risk on back and riled up the Crude Oil market which is trading 4.22% higher from yesterday’s close and making new highs. The July contract is currently at 5327 which is 215 points higher. The trading range has been 5334 to 5092.
On the Corn Front the market is rocking as well. We just missed punching through the May 29th high of 438. There are fields still under water and fields that farmers and investors wonder how to compile the damage in yields we will see in this years crop that were not accustomed to. In the overnight electronic session the July Corn is currently trading at 436 ¼ which is 6 ¼ cents higher. The trading range has been 437 ¾ to 436 ¼.
On the ethanol front there were no trades posted in the July contract but the August had a print at 1.528 which is .011 higher. The market is currently showing 2 bids @ 1.523 and 1 offer @ 1.533 with 2 contracts traded and Open Interest at 299 positions.
On the Natural Gas front we have the EIA Gas Storage at 9:30 A.M. The Thomson Reuters polled 19 analyst who estimated injections ranging from 100 bcf to 124 bcf with the median build of 109 bcf. This compares to the one-year injection build of 95 bcf and the five-year average of 84 bcf. In the overnight electronic session the July Natural Gas is currently trading 2.366 which is 2 cents lower the trading range has been 2.384 2.355.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374