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 off this shortened Independence week with Pending New Home Sales YoY & MoM at 9:00 A.M., Dallas Fed Manufacturing Index at 9:30 A.M., Export Inspections and Fed Daly Speech at 10:00 A.M., 3-Month and 6-Month Bill Auction at 10:30 A.M. Fed Williams Speech at 2:00 P.M. and Crop Progress at 3:00 P.M.
On the corn front the market sank on U.S. Mid-West weather while funds added to their record short positions in last weeks trade. In the overnight we are coming in higher but I would be hard pressed to believe we will be green with Export Inspections and Crop Progress which should show plenty of supplies in grain and a modest shift in U.S. planting from corn to soybeans. Traders are also keeping tabs on China as tensions rise and our relations soured with the pandemic with China flexing it’s muscle in Hong Kong Taiwan and other area in the Pacific Rim and wants Washington to stay out of it affairs. They are also threatening this could end the trade deal signed in January. In the overnight electronic session the December Corn is currently trading at 328 ¼ which is 3 cents higher. The trading range has been 328 ¼ to 323 ½.
On the Ethanol front we were pretty quiet on the news front. Just continuing to see production rise and stockpiles fall. There were no trades posted in the overnight electronic session. The August contract settled at 1.110 and is currently showing 1 bid @ 1.091 and 1 offer @ 1.150 with Open Interest at 77 contracts. We could see strength in this market today with a trend developing in sugar and with corn and energy prices higher in the early going.
On the Crude Oil front we started out lower this morning and higher with traders fearing states may go back on lock-down again. We are starting to see demand take place and traders are expecting travel this long weekend as we celebrate Independence Day. In the overnight electronic session the August Crude Oil is currently trading at 3890 which is 41 points higher. The trading range has been 3912 to 3750.
On the Natural Gas front we are trading sharply higher after last weeks nosedive after the EIA Gas Storage data while prices have not fully recovered we are still inching higher. With weather related demand perking up we could see additional short covering and higher volatility. In the overnight electronic session the August contract is currently trading at 1.619 which is 7 ½ cents higher. The trading range has been 1.623 to 1.558.
Have a Great Trading Day!