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 have API Energy Stocks at 3:30 P.M. Yesterday’s Crop Progress showed we are behind last years plantings and the data is being skewed as the data of acreage was above expectations. USDA NASS admitted the survey on Friday’s Grain Stocks and Planted Acreage had no basis to even being close to what reality is. It does not take a rocket scientist to realize this has been a horrendous year for crops and it is not what you plant but what you grow. However, that did not stop the funds from long liquidation and step on short positions to bury the latest rally. We could see bargain basement shopping but the market is still in awe after the data we are receiving. In the overnight electronic session the December Corn is currently trading 422 ¼ which is a ¼ of a cent lower. The trading range has been 425 ¾ to 421 ½. Warmer weather and more heavy rains are forecasted and I do believe the horse already left the barn.
On the Ethanol front the July contract expires tomorrow. The U.S. Grain Council announced that the sole Ethanol producer in Viet Nam is preparing a test in a deal with Nebraska watching U.S. Corn as a feedstock with a hammer mill purchased during a mission to the U.S. in June. The Vietnamese government and industry members are working to increase Ethanol use under a national E5 blend mandate. According to Robert Pore with The Independent. This story is supportive to prices with the August Ethanol currently trading at 1.503 which is .005 higher. The trading range has been 1.503 to 1.499. The market is currently showing 1 bid @ 1.496 and 1 offer @ 1.504. 2 contracts traded and Open Positions are at 667 positions.
On the Crude Oil front the market is weighing headlines of which headline you believe of demand destruction in 2020 that has the market selling off on rallies. Let’s get through 2019 to get a handle on demand gang. We will have the API Energy Stocks later this afternoon and could set the tone for the rest of this short week. We must not forget geo-political concerns and according to President Trump Iran is playing with fire. If they continue down the road in their provocative manner they will lose in the end BIG TIME. In the overnight electronic session the August Crude Oil is currently trading at 5859 which is 50 tics lower. The trading range has been 5943 to 5846.
On the Natural Gas front it is caught the bouncing ball, or do we free fall again? In the overnight electronic session the August contract is currently trading at 2.287 which is 2 cents higher. The trading range has been 2.297 to 2.264. This market needs a sustained heat wave to get some legs and start moving.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374