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 day with Export Sales and Jobless Claims at 7:30 A.M. followed by EIA Gas Storage at 9:30 A.M. and Cold Storage at 2:00 P.M. On the Corn front the Pro Farmer Midwest Tour scouts perceived the late plantings in Illinois improved significantly and there were fewer signs of unplanted fields. I still believe that the crops maturity has been exhausted and stressed and once again it is not what you plant but what you grow and the 2% of the crop is for human consumption as a whole. What will this crop produce. I still expect shortages and eventually these will blossom if one of these USDA reports come even close as we edge closer to harvest. The Pro Farmer Tour also estimated in Illinois the average yields at 1.71.17 bushels to acre down from 192.63 last year and the three-year average at 188.95. In the overnight electronic session the December Corn is currently trading at 371 ¾ which is 1 ½ of a cent higher. The trading range has been 371 ¼ to 370 ½.
On the Ethanol front there were no trades posted in the overnight electronic session. The October contract settled at 1.355 with the market currently showing 1 bid @ 1.342 and 1 offer @ 1.399 with Open Interest growing to 401 contracts.
On the Crude Oil front we are trading higher on tight supplies and demand not diminishing. We also have a risk on play with global tensions rising with global trade fears and Free Trade and NATO countries having to pay their fair share and not have the U.S. military be the global copper. In the overnight electronic session the October Crude Oil is currently trading at 5628 which is 60 points higher. The trading range has been 5646 to 5544.
On the Natural Gas front we have the EIA Gas Storage at 9:30 A.M. with expectations of builds of 58bcf. Mother Nature is at it again leaving weather forecasters scratching their heads if we will have much cooler temperatures or an Indian Summer that would sneak in and could test this domestically oversupply market. In the overnight electronic session the September Natural Gas is currently trading at 2.185 which is 1 ½ of a cent higher. The trading range has been 2.187 to 2.151.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374