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 start of the day with MBA Mortgage Applications and MBA 30-Year Mortgage Rate at 6:00 A.M., Redbook MoM and YoY at 7:55 A.M., 119-Day Bill Auction, 273-Day Bill Auction and Richmond Fe Manufacturing Index at 9;00 A.M., 2-Year FRN Auction at 10:30 A.M., Fed Bullard Speech at 11:30 A.M., 5-Year Note Auction at 12:00 P.M., Fed Beige Book at 1:00 P.M. and API Energy Stocks at 3:30 P.M.
On the Corn front we settled higher in yesterday’s action with a roaring stock market and strong outside markets. Saturating rains are forecasted today and tomorrow in the Corn Belt with more than 3 inches expected in some areas. Funds remain short and there seems to be growing concerns of political fall-out with U.S.-China trade over the coronavirus and what’s at stake in Hong Kong. Threats and counter-threats keep going back and forth with the possibility of more tariffs and cancellations on ag products with China have plenty of corn in storage. In the overnight electronic session the July Corn is currently trading at 320 ¼ which is 1 ¼ of a cent higher. The trading range has been 321 to 319 ½.
On the Ethanol front there were no trades posted in the overnight electronic session. The July contract settled at 1.129 and is currently showing 2 bids @ 1.106 and 6 offers @ 1.150 with Open Interest at 120 contracts. The market has had a surprisingly good rebound but still has quite a bid of road ahead of it. Iowa Senators Chuck Grassley and Joni Ernst are urging the Food and Drug Administration to allow Iowa ethanol plants to produce hand sanitizer. At first the FDA said the ethanol requirement did not meet the two federal benchmarks. This prompted ethanol plants , struggling with the drop in gasoline demand, to begin shifting to hand sanitizer production. The USDA has since reversed that guideline, which the senators called “inexplicable.” I will keep you posted on this story as it develops.
On the Crude Oil front the market is trading lower with some early profit taking. We have the API Energy Stocks at 3:30 P.M. which could start another rise in energy prices. In the overnight electronic session the July Crude Oil is currently trading at 3391 which is 44 points lower. The trading range has been 3432 to 3351.
On the Natural Gas front today is Last Trading Day for the June contract. The warmer temperatures and rallies in the crude and products gave this market some much needed support. Tomorrows EIA Gas Storage could be a telling factor as temperatures are forecasted to moderate. In the overnight electronic session the July contract is currently trading at 1.968 which is .023 cents higher. The trading range has been 1.979 to 1.925.
Have a Great Trading Day!