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
As President Trump stole the show at the G-7 meeting conquering several issues the enemy and main stream media continued to invoke. Let’s start with the U.S. economy rolling and China wants to talk a trade deal that will have to be a fair deal, Trump was also open to bringing Russia back to the Group of Eight that his predecessor kicked out over his embarrassment and lack of leadership when the Russians invaded Crimea and Trump was also open to talk with Iran even after the surprise dog and pony show put on by Macron and Rouhani. He further went on to say if he wants to be a member of the world community it will be without Nukes.
On the Corn front, the USDA showed Crop Progress moving 1 % point higher good-to-excellent. I wish I knew what they based this on because from what I have seen and talking to farmers I see a different painted picture. If we have a frost with the late plantings, having no chance for mistakes, I would expect premiums to rally in a heartbeat. In the overnight electronic session the December Corn is currently trading at 368 ¼ which is unchanged. The trading range has been 369 to 366 ¾.
On the Ethanol front the October contract posted a trade at 1.320 which is .006 higher. 8 contracts traded with the market currently showing 1 bid @ 1.320 and 5 offers @ 1.330 with Open Interest at 437 contracts.
On the Crude Oil front, the market is trading higher on expectations of a bullish draw on the API Energy Stocks today. OPEC and Non-OPEC countries may push production even lower as the market sold off yesterday because traders thought that President Trump would cut a deal with Iran. If you remember months ago when he granted waivers on sanctions the Energies took a nosedive. In the overnight electronic session the October Crude Oil is currently trading at 5418 which is 54 points higher. The trading range has been 5457 to 5371.
On the Natural Gas front, the September contract will expire tomorrow. We are eyeballing Tropical Storm Dorian and Tropical Depression Six in the Atlantic. After yesterday’s rally we seemed to be as calm as the storm’s churn in the Atlantic and seemed less of a threat than yesterday’s action. In the overnight electronic session the October contract is currently trading at 2.178 which is 5 ½ cents lower. The trading range has been 2.235 to 2.175.
Have a Great Trading Day!
Questions? Ask Dan Flynn today at 312-264-4374