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
With threats from Iran and Russia the United States and partners from 19 are getting set for a massive series of war drills in the Ukraine from July 1st to July 12th, American military assets will join 19 nations, 33 ships, 26 aircraft and over 3,000 troops to participate in maritime, air and land exercises that will enhance capabilities, improve interoperability and build upon decades of partnership and friendship. While Iran said the latest sanctions end any hope for diplomacy. That comment was followed by Iranian president Rouhani who mocked the White House and said it is “afflicted by mental Retardation”, I guess he knows not who should have their head examined. If you continue to be the global bank on terrorism Iran be warned, play nice or else. We have Consumer Confidence and New Home Sales at 9:00 A.M. and API Energy Stocks at 3:30 P.M. On the Corn front yesterday’s Crop Progress gave no real new signs of improvement. Traders are looking for the smallest acreage and yields not seen in years. Warm and drier weather are forecasted this week and next but we still will have intermediate rains in the coming days. This could lead to traders buying breaks. In the overnight electronic session the July Corn is currently trading at 451 ¼ which is 4 ½ cents higher. The trading range has been 453 to 448 ½.
On the Ethanol front the July contract is currently trading at 1.605 which is .030 higher. The trading range has been 1.605 to 1.595. The market is currently showing 2 bids @ 1.589 and 1 offer @ 1.594 with 9 contracts changing hands and Open Interest at 319 contracts.
On the Crude Oil front we have global risk in the market that could create a parabolic mode on headlines. We also have the weekly API Energy Stocks at 3:30 P.M. that could set the tone for the week. In the overnight electronic session the August Crude Oil is currently trading at 5792 which is 2 tics higher. The trading range has been 5810 to 5720.
On the Natural Gas front the July contract is set to expire tomorrow so we will shift our focus to the August contract which is currently trading at 2.624 which is 2 cents lower. The trading range has been 2.283 to 2.252. Can warmer temperatures last long enough to bring up demand numbers?
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374