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 morning with Export Sales and Jobless Claims at 7:30 A.M. followed with EIA Gas Storage at 9:30 A.M. FED Chief Jerome Powell talked dovish after the FED held Interest Rates in check while leaving the door open for a Rate cut in the July meeting. The decision could have the ponderous of the outcome of the meeting with President Trump and President Xi at the G20 Osaka Summit June 28th and 29th. Other headlines grabbing the markets attention that Iran shot down a U.S. Navy drone they claim was in their airspace the U.S. contends it was in international airspace. If history repeats itself which it usually does Iran is scraping for a fight as they denied for allegedly sabotaging Oil Tankers in international waters. My question is, why did one of their gunships take an unexploded mine off one of the tankers. I do know it was not for humanitarian reasons. One thing is for sure the U.S. Navy will have tracking information that can tell the world exactly where that drone was and Iran and her proxies continue to move in a provocative manner and deny any wrongdoings. Sooner or later they will bite the bullet. On the Corn front we have Export Sales at this morning and Option Expiration tomorrow. We also have rains, flash floods and cooler temperatures ahead of warming temperatures and more rains. The ground is still cooler than normal and saturated. In the overnight electronic session the July Corn is currently trading at 440 ¾ which is a ¼ of a cent lower. The trading range has been 442 to 436 ½. After the option expiration we could see a bottom.
On the Ethanol front South Dakota’s newest Ethanol plant is fully operational. Ringneck Energy’s plant near Onida is now turning 80,000 bushels of Corn into 225,000 gallons of Ethanol daily. In the overnight electronic session the July contract is currently trading at 1.573 which is .010 higher. The trading range has been 1.573 to 1.572. The market is currently showing 1 bid @ 1.567 and 2 offers @ 1.574 with 4 contracts traded and Open Interest at 528 positions.
On the Crude Oil front we have the July contract expiring today. We also have had a bullish inventory number with record Gas demand has refineries ratcheting up, and stimulus on the way and once again a possible war in the Middle-East with the usual suspects trying to wreak havoc on international trade. In the overnight electronic session the August Crude Oil is currently trading at 5576 which is 179 points higher. The trading range has been 5595 to 5435.
On the Natural Gas front we have the EIA Gas Storage at 9:30 A.M. The Thomson Reuters poll with 20 analyst participating estimate injections ranging from 96 to 115 bcf with the average build of 107 bcf and the median build of 105 bcf. This compares to the one-year build of 71 bcf and the five-year increase of 70 bcf. The numbers look bearish compared to history with the lack of extreme heat getting more usage of air-conditioning units. In the overnight electronic session the July contract is currently trading at 2.281 which is a ½ of a cent higher. The trading range has been 2.293 to 2.267.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374