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 kick off the day with NAHB Housing Market Index (MAY) at 9:00 A.M., Export Inspections at 10:00 A.M., 3-Month & 6-Month Bill Auction at 10:30 A.M. and Crop Progress at 3:00 P.M. On the Corn farmers are waiting to see bad the freeze and frost damage has hurt the young corn. The bright spot was rain showers and heat followed which is a positive according to Emerson Nafziger, an Extension corn specialist at the University of Illinois. He continued, “ with different low temperatures across the regions, and with damage ranging from minor leaf loss to death, the only way to know if seedlings still alive will survive to see if they produce new green tissues a few days with warmer temperatures,” he explains. “By early next week we will know.” In the overnight electronic session the July corn is currently trading at 321 ¼ which is 2 cents higher. The trading range has been 322 to 320.
On the Ethanol front the market is looking at Corn prices to gauge profit margins as we are starting to see more drivers on the road. And Crude Oil’s breakout may be setting the tone as well. It looks like demand destruction could be in the rear-view mirror. Let’ only hope. As ethanol producers who have survived this onslaught will be able to re-start their engines. There were no trades posted in the overnight electronic session with the July ethanol settled at 1.067 from Friday’s session. The market is currently showing 5 bids @ 1.056 and 1 offer @ 1.136 with Open Interest at 243 contracts.
On the Crude Oil front the June mini contract expires at the 1:30 settlement close at cash value. As we tested $30 a barrel in Friday’s action, today we see a running of the bulls. A lot of factors are in play with this markets recovery. We all remember last month when the May contract expired in the dink. This forced Saudi Arabia to stop their ridiculous flood of Oil in the open market, not to mention, be blindsided by the coronavirus pandemic whitewash. We have recently seen the Saudi’s and OPEC+ maneuver differently as they realized marginal profits are better than no profits at all as they attacked the U.S. Shale market. In the overnight electronic session the July Crude Oil is currently trading at 3205 which is 253 points higher. The trading range has been 3223 to 2955.
On the Natural Gas front it was not denied an invitation to the Energy party. The Energy complex is all in the green like a St. Patrick’s Day parade denied to us with the pandemics lockdown. The June contreacyt is currently trading at 1.746 which is 10 cents higher. The trading range has been 176.8 to 1.702.
Have a Great Trading Day!Questions? Ask Dan Flynn today at 312-264-4374