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 this morning with MBA Mortgage Applications and MBA 30-Year Mortgage Rate at 6:00 A.M., EIA Energy Stocks at 9:30 A.M., 20_Year Bond Auction at 12:00 P.M., FOC Minutes at 1:00 P.M., Dairy Product Sales and Milk Production at 2:00 P.M.
On the Corn front news that Pringles have a new product called Sweet Corn Chips that tastes just like corn on the cob with melted creamy butter. I can’t wait to be the judge how good this product is, as I love corn on the cop. In yesterday’s trading action we were mixed with corn slightly higher and soybeans lower. Traders in the corn market expect higher trade but key resistance is thwarting the market. We still have planting delays due to rains and cooler temperatures in North Dakota, Indiana, Michigan and Ohio. Most of the crop is ahead of schedule in states in the Corn Belt, Iowa, Illinois, Minnesota, Nebraska and with Wisconsin right on the money where they want to be at this juncture. We still have concerns with some rivers in or at flood stage and will China continue to buy Ag products after the fallout of the pandemic. In the overnight electronic session the July Corn is currently trading at 319 ¾ which is 1 ½ of a cent lower. The trading range has been 321 ½ to 318 ¼.
On the Ethanol front we are seeing the gasoline supplied ethanol & ethanol stocks coming back faster than most investors, traders, farmers and producers predicted. The rebound in the energy complex and China buying AG products helped. But will we continue to see this trend or change with the behavior of China COVID-19 response recently, or will they honor past trade agreements made. We are also seeing ethanol consumption almost outpace production which could lead to more openings to boost production. As we climb out of the pre-COVID 19 days we still have inroads to go but this is encouraging news. The July ethanol posted ethanol posted a trade at 1.110 which is 0.016 higher. The market is currently showing 3 bids @ 1.080 and 1 offer @ 1.170 with 3 contracts traded and Open Interest at 244 contracts.
On the Crude Oil front the market is rocking after another bullish surprise API and the EIA Energy Stocks at 9:30 A.M. today. Last night bullish number in Crude and Cushing, Oklahoma had the running of the bulls. With a vast number or majority of states chomping on the bit to reopen, traders see a change in demand not far behind. And the rebound in the energy complex will not be denied. In the overnight electronic session the July crude oil is currently trading at 3272 which is 76 points higher. The trading range has been 3280 to 3156.
The euphoria was not to be denied the Natural Gas front either as they are in shoulder season. Hopefully, looking ahead to a hot summer so they can realize bigger consumption numbers. In the overnight electronic session then June contract is currently trading at 1.880 which is 5 cents higher. The trading range has been 1.884 to 1.801. Tomorrow we will have the EIA Gas Storage data at 9:30 A.M.
Have a Great Trading Day!
Call me with any questions or trading advice at 1-888-264-5665 or email@example.comQuestions? Ask Dan Flynn today at 312-264-4374