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 EIA Energy Stocks at 9:30 A.M. followed by Consumer Credit and Dairy Product Sales at 2:00 P.M. On the Corn front we are bracing for higher prices with the latest heat wave will hit today with winds coming from the west and should even be hotter and stress the crop even further. We will also see how long this hot weather will last and it looks like the trees are already turning to and early autumn while we have Crop Production USDA Supply/Demand data on Monday. In the overnight electronic session the December Corn is currently trading at 414 ½ which is 2 cents higher. The trading range has been 415 ¼ to 412 ¼.
On the Ethanol front the September contract posted a trade at 1.417 which is .011 lower. 2 contracts traded and the market is currently showing 1 bid @ 1.413 and 2 offers @ 1.419 with Open Interest dropping to 518 contracts.
On the Crude Oil front last nights API Energy Stocks showed draws on Crude Oil of 3.4mln Barrels, Cushing down 1.6mln barrels, Gasoline down 1.1mln barrels and Distillates showed builds of 1.2mln barrels. Even with the bullish API data the overall mood is negative even with global banks stimulating the economy while supplies remain tight in the U.S. and the shale producers profit center is getting beat up. We also are seeing mergers and acquisitions in the Oil patch and historically that is a pinpoint to a bull market to come. In the overnight electronic session the September Crude Oil is currently trading at 5293 which is 70 points lower. The trading range has been 5377 to 5269.
On the Natural Gas front the heat has most likely had some shorts cover and take profits. In the overnight electronic session the September Natural Gas is currently trading at 2.136 which is 2 ½ cents higher. The trading range has been 2.145 to 2.089.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374