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 Construction Spending and ISM Manufacturing Index at 9:00 A.M., Exports Inspections at 10:00 A.M., Cotton System, Fats & Oils and Grain crushing at 2:00 P.m. followed by Crop Progress at 3:00 P.M. The markets seem to be trading like a broken record putting doom & gloom or the ugly R- word recession and the U.S.-China trade talks. I do not see a recession at this time, however.
And the reason being, foreign investors are buying Gold and/or moving their monies into the U.S. dollar as a safe haven. They are not buying the U.S. dollar because they like us but they are gonna get more bang for their buck vs. British Pond or China’s yuan. On the Corn front, we are taking it on the chin again as the trade talks continue and the U.S. is not backing down which is the latest threat to U.S. Agriculture. We should have not put our eggs in one basket with the trade relationship with China. In the overnight electronic session the December Corn is currently trading at 365 ¾ which is 4 cents lower. The trading range has been 370 to 364 ½.
On the Ethanol front, the October contract is currently trading at 1.344 which is .013 lower. The trading range has been 1.375 to 1.344. The market is currently showing 1 Bid @ 1.340 and 1 offer @ 1.347. with 18 contracts traded and Open Interest at 432 contracts.
Sorry for the short report today. Call me if you have any questions!
Have a Great Trading Day!