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 kickoff the first day of August with Export Sales and Jobless Claims at 7:30 A.M., Construction Spending and ISM Manufacturing Index at 9:00 A.M., EIA Gas Storage at 9:30 A.M. followed by Cotton System, Fats & Oils and Grain Crushings at 2:00 P.M. On the Corn front we traded lower yesterday with month end and fund sellers piling on the latest reports of Corn’s good to excellent ratings. Whatever the weather forecasts that predict the coming weather patterns will be conducive to crop ratings and yields and not to bet against the U.S. farmer but the truth is this crop is woefully behind. In the overnight electronic session the December Corn is currently trading at 411 ½ which is 1 ½ of a cent higher. The trading range has been 412 ¼ to 410 ¼.
On the Ethanol front there were no new headlines other than Corn producers and Refineries are playing a tug of war over the Renewable Fuel Standard (RFS) and the Energies and Corn market make direction of trade difficult.. There were no trades in last nights action with the September contract settling at 1.455 and is currently showing 1 bid @ 1.440 and 1 offer @ 1.452 with Open Interest at 562 contracts.
On the Crude Oil front the market sunk after the Fed Chairman Powell spoke and it seems the selloff was overdone as well. Iranian exports continue to fall while OPEC production cuts remain intact and with the rate cut we should see a pick-up in demand. In the overnight electronic session the September Crude Oil is currently trading at 5765 which is 93 points lower. The trading range has been 5799 to 5743.
On the Natural Gas front we have the EIA Gas Storage today and the market is trading higher with hotter weather heading north and putting a change in the Jet Stream. He Thomson Reuters poll with 19 analyst participating expect injection builds of 49 bcf to 67 bcf with the median 57 bcf. This compares to the one-year build of 46 bcf and the five-year average of 43 bcf. Another tid-bit traders are watching is two tropical depressions churning in the Atlantic. In the overnight electronic session the September Natural Gas is currently trading at 2.308 which is 7 ½ cents higher. The trading range has been 2.319 to 2.229.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374