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
Make America Great Again! Mr. President Great Job for your restraint, not jumping the gun and having the guts proving peace is the highest aspiration of the American people. We will negotiate, sacrifice but never surrender to it! Now or forever! We our Americans! The whole world is watching and there is no doubt who the aggressor is and you proved once again you will fight the good battle for free commerce among all nations and America first. God Bless all of our troops protecting our Freedoms. Free Markets for Free Men.
O.K. sports fans let’s get down to the business at hand as we kickoff the first day of summer with July Grain options expiring today and we have the Cattle on Feed report at 2:00 P.M. On the Corn front we are watching weather and concerns of acreage and yields which is in the minds of farmers, investors, traders or all of the above. We have not seen a year in recent times that if we did not have a bumper crop with weather concerns that fork in the road would be met by carryover. But add to the equation of growing Ethanol demand feed for livestock and human consumption we have not seen concerns of global consumption in decades. Well we must make adjustments as Mother Nature is most definitely working with us across the globe. In the overnight electronic session the July Corn is currently trading at 450 ½ which is a ½ of a cent lower. The trading range has been 454 to 450 ½. Remember to watch the close as we could see extreme fluctuations with July options going off the board.
On the Ethanol front there were no trades posted in the overnight electronic session. The July contract settled at 1.592. The market is currently showing 2 bids @ 1.582 and 1 offer @ 1.597 with Open Interest at 522 positions.
On the Crude Oil front Pandora’s box has been opened with the risk and cost of doing business as Oil tankers moving through the Strait of Hormuz have insurance premiums going through the roof and some companies seeking a longer safer and more expensive route will only lead to us paying higher at the pump and Energy prices skyrocketing in the free world. Oman delivered a message to Tehran via President Trump that we can still talk but that window of opportunity is closing fast. Iran apparently does not want to talk and one Omani official speaking on anonymity said, “any attack on Iran will have regional and international consequences”. Hey you betcha! You fired the first and last shots! If you want to fight like a man step up to the plate not like your acting you chickensh*t coward terrorist thugs.
In the overnight electronic session the August Crude Oil is currently trading at 5748 which is 41 points higher. The trading range has been 5798 to 5666. We also have refinery fires in Philadelphia which could further add to premium in the market.
On the Natural Gas front the market is bouncing after yesterday’s break with the bearish EIA Gas Storage number which came in at an injection build of 115 bcf. In the overnight electronic session the July Natural Gas is currently trading at 2.205 which is 2 cents higher. The trading range has been 2.222 to 2.191.
God Bless Our Troops President and the United States of America!
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374