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
Busy start to a short week starting with Construction Spending and ISM Manufacturing Index at 9:00 A.M., Export Inspections at 10:00 A.M., Cotton System, Fats & Oils and Grain Crushings at 2:00 P.M. followed by Crop Progress at 3:00 P.M. On the Corn front I. Almeida with Bloomberg pointed out a small detail that the 91.7 million acres the USDA reported planted with Corn, almost 17% hadn’t been sown at the time of the agency’s interviews with farmers in the first two weeks of June, Lance Honig, branch chief for crops at NASS, said in a tweet following Friday’s report. The survey in July will help the agency, “determine what happened with these acres”, he said. We were trading higher in the Grains in the early part of the overnight electronic session on the many successes President Trump achieved at the G20 meeting. He also made time to drop in on Kim Jong Un and talk and reminded him we can still talk but there is no deal and the sanctions remain. Very excellent diplomatic meeting Mr. President and I am not tired of winning! Keep Going and Godspeed! Now that were past First Notice Day on all July Grains we will shift our focus to December Corn leapfrogging the September contract even when allegedly harvest will begin or is supposed to. The December Corn is currently trading on the lower end of the range. The December contract is last at 429 ¼ which is 2 ¼ cents lower. The trading range has been 429 ½ to 422 ½.
On the Ethanol front we are just following the trade news at the moment and what shortages to expect from a very weak Corn crop. In the overnight electronic session the August Ethanol is currently trading at 1.524 which is .001 lower. The trading range has been 1.525 to 1.524. The market is currently showing 1 bid @ 1.515 and 1 offer @ 1.524 with 3 contracts changing hands and Open Interest at 675 contracts.
On the Crude Oil front the market is rolling trading above $60 a barrel on news that Saudi Minister of Energy Khalid Al Falih stated he wants Opec and Russian-led allies to extend their deal to cut Oil output by nine months. He also said the demand numbers for 2020 are not as grim as some agencies have predicted. Add in another geo-political tense situation with Turkey and Libya ready to lock horns over Libyan strongman Khalifa Haftar detaining 6 Turkish nationals and battle drums are sounding. In the overnight electronic session the August Crude Oil is currently trading at 6010 which is 163 points higher. The trading range has been 6028 to 5927.
On the Natural Gas front the bears are having the time of it for now with the market trading lower despite the beginning of a massive heat wave that is only a few days old and investors wonder how long it will last. In the overnight electronic session the August Natural Gas is currently trading at 2.258 which is 5 cents lower. The trading range has been 2.331 to 2.248.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374