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 Business Inventories and Retail Sales at 7:30 A.M. followed by Capacity Utilization and Industrial Production at 8:15 A.M. On the Corn front we are going higher and higher baby. With contract highs and more wet and cooler than normal temperatures make acreage and yields coming into focus how behind this crop will be after years of bumper crops. Ideally, I would like to see the market punch through 450 today and set our sights on the resistance at 455 ¼ and then make a push for 464. Farmers are pulling back on selling for the moment as they know the writing is on the wall with this crop. In the overnight electronic session the July Corn is currently trading at 448 which is 6 cents higher. The trading range has been 448 ½ to 441 ¾. Buckle up your chin straps Grain traders, we should see a wild ride to the upside. Remember we are two weeks away from the G-20 meeting and we could have results in talks with China.
On the Ethanol front the July contract is currently trading at 1.564 which is .015 higher. The treading range has been 1.564 to 1.550 while the market is currently showing 1 bid @ 1.563 and 1 offer @ 1.575 and Open Interest at 577 positions. There was activity in the August contract as well mainly due to rollovers and Corn and Energy prices soaring.
On the Crude Oil front do not believe the International Energy Agency (IEA), they slashed their estimates for global demand citing intensified trade concerns. They have a penchant for spreading false or incorrect statements stalling any fair market value for higher Energy prices. Let’s do the math on this, Russia and Saudi Arabia are cutting production and will continue to do so regardless of what Putin says. He wants to play hardball to remind everyone in the room he still matters on the world stage. At the end of the day he will be onboard with production cuts and expect a heroes welcome. Spare me! We also have Oil tanker insurance prices going through the roof because of more risk with the chicken s*%t cowards like Iran and her proxies disrupting the worlds free Oil flow in international waters. In the overnight electronic session the July Crude Oil is currently trading 5221 which is 7 points lower. The trading range has been 5270 to 5170.
On the Natural Gas front the market is treading water after a slightly friendly EIA Gas Storage number yesterday. In the overnight electronic session the July Natural Gas is currently trading at 2.345 which is 2 cents higher. The trading range has been 2.354 to 2.323.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374