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
U.S.-China trade talks kickoff in Shanghai without a lot of high expectations. Whether political or basic economics both sides need an agreement. China needs U.S. pork and they can play the long plan and play a band hand in poker hoping to carry the talks into the 2020 election. The U.S. will negotiate, sacrifice but will not surrender to a bad deal and I hope China gets it. The FED meets today and tomorrow with expectations of an Interest Rate cut tomorrow which should buoy commodity prices regardless of the trade talks. This morning reports start with Personal Income at 7:30 A.M. and Consumer Confidence at 9:00 A.M. later in the afternoon we have API Energy Stocks. Yesterday’s Crop Progress report had mixed signals and Corn Silkings are coming into play. We still have weather and maturity of the crop to sustain any formidable weather not to mention the trade talks which China is not following through with their words. In the overnight electronic session the December Corn is currently trading at 422 ¾ which is 4 ¼ cents lower. The trading range has been 426 ¾ to 422 ¼.
On the Ethanol front the industry is grasping to grow margins in the middle of U.S.-China trade talks which with tariffs slowing the market and weather that has not only hampered the Corn crop but refineries as well. With profit margins slim producers continue to tread water to keep their head above water. In the overnight electronic session the September contract is currently trading at 1.470 which is .023 lower. The trading range has been 1.494 to 1.470. The market is currently showing 1 bid @ 1.477 to 1.487. with 10 contracts traded and 609 Open positions.
On the Crude Oil front the market is trading headlines whether it is U.S.-China trade talks, OPEC and Non-OPEC nations cutting production, the FED cutting Interest Rates to stimulate the economy or the goofball Iranians piracy and terrorism moves in the Strait of Hormuz this market is showing many bullish signs as we reach the fork in the road. In the overnight electronic session the September Crude Oil is currently trading at 5710 which is 23 points higher. The trading range has been 5755 to 5702.
On the Natural Gas front the market is trading in a narrow range. Fundamental grappling with weather extremes to move product and prices. In the overnight electronic session the September Natural Gas is currently trading at 2.116 which is unchanged. The trading range has been 2.142 to 2.112.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374