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
He said she said as tariffs build and the showdown is on and this town Ain’t big enough for the two of us, don’t expect President Trump to back down as the Chinese are devaluing the Yuan trying to match wits which where investors will park their money elsewhere. Today we have the ISM Non-Manufacturing Index at 9:00 A.M., Export Inspections at 10:00 A.M. and Crop Progress at 3:00 P.M. On the Corn front I bet you would never hear me say we need rain after this winter/spring year but yes the crop is now thirsting after being nearly drowned in the early growing season. What ever crop survived which the majority behind and now it is survival of the fittest. Also China rebuking buys of American goods, eventually they will have to buy Grains, Beef and Pork and South America will not fill the void. While devaluing the Yuan it may sour purchasing in China. In the overnight electronic session the December Corn is currently trading at 402 ¼ which is 7 ¼ cents lower. The trading range has been 411 ¼ to 401. Even with the trade dispute I am looking to buy value and I believe this sell off is overdone and look to see prices recuperate in today’s trading session or have a Turn Around Tuesday.
On the Ethanol front the August contract expires today while the September contract is currently trading at 402 ¼ which is .023 lower. The trading range has been 1.437 to 1.432. The market is currently showing 1 bid @ 1.430 and 2 offers @ 1.434 with 22 contracts traded and Open Interest at 542 positions.
On the Crude Oil front the market is bouncing off the lows the Chinese news which created an overdone fear factor. If the Chinese devalue their currency and the FED sure to cut rates at the September meeting should be a perfect recipe for a spending spree. And you will use Energy to do so while OPEC production cuts are solid, Iran and Venezuelan Oil off the market and Libya’s production a flip of the coin with political factors disrupting their flow of Oil. In the overnight electronic session the September Crude Oil is currently trading at 5459 which is 107 points lower. The trading range has been 5553 to 5422.
On the Natural Gas front the market continues to dive like the submarine captain shout Dive, Dive, Dive. So much product and not enough demand to spur any buying interest with demand very low for this time of year. In the overnight electronic session the September Natural Gas is currently trading at 2.051 which is 7 cents lower. The trading range has been 2.100 to 2.029.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374