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 Personal Income at 7:30 A.M. and followed by the Michigan indicators with Consumer Expectations, 5-Year Inflation, Michigan Current Conditions, Inflation Expectations and Consumer Sentiment at 9:00 A.M., Baker Hughes Rig Count at 12:00 P.M. followed by Fed Bostic Speech at 1:00 P.M.
On the Corn front the market continues to claw away with demand woes and tenders fluctuate causing a another reason in the rise in the VIX Index. Yesterdays Export Sales were promising but there can be undoubtedly cancellations as we are still in the fetal stages of this pandemic that could slow other economies as well. Traders do expect another turn to the downside but would look to be buying at the lows on the weekly or daily chart. In the overnight electronic session the May Corn is currently trading at 347 which is 1 ¾ of a cent lower. The trading range has been 348 ½ to 345 ¾.
On the Ethanol front it is the same old song with energy demand destruction as OPEC and OPEC+ continue to battle for market share cutting prices that is taking a toll on Ethanol plants and the Corn growers who supply part of the Energy which is killing their bottom-line because of costs. Once again there were no trades posted in the overnight electronic session. The May contract settled at 0.995. The market is currently showing a tighter spread than in past days with 1 bid @ 0>965 and 1 offer @ 0.989 and Open Interest at 306 contracts. Let’s hope the House of representatives get their act together putting aside their agendas and sign legislation that will put the American people back to work!
Have a Great Trading Day!