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 the day with Market Composite PMI and Market Composite Services PMI Final (June) at 8:45 A.M., ISM Non- Manufacturing Index at 9:00 A.M., Export Inspections at 10:00 A.M., 3-Month and 6-Month Bill Auction at 10:30 A.M., Crop Progress at 3:00 P.M. and Total Vehicle Sales at (June) at 7:00 P.M.
On the Corn front we hit a 3 ½ week high on concerns we will have a hot & dry spell which is driving the market. If we have a positive good to excellent Crop Progress data from the USDA we could see weaker fresh longs exit the market. Today’s data could factor largely with traders are already looking into harvest prospects after a lower than estimated planting number in last weeks acreage data and weather will be in place with traders jockeying for position. In the overnight electronic session the December Corn is currently trading at 357 ½ which is 4 cents higher. The trading range has been 360 to 357.
On the Ethanol front it is Last Trading Day for the July contract with 16 open positions that will need to be liquidated. I anticipate higher trade due to the strength in the Corn and Stock Market prices. There were no trades posted in the overnight electronic session. The August contract settled at 1.295 and is currently showing 2 bids @ 1.270 and 2 offers @ 1.295 with light Open Interest at 75 contracts.
On the Crude Oil front the market is attempting to punch through $41 a barrel and stay there. The next objective would be $45 a barrel and with increasing demand and production levels decreasing, not to mention slowing imports, and more positive economic and employment data in this short period of time with the pandemic making it feel really long we should see prices climb. In the overnight electronic session the August Crude Oil is currently trading at 4067 which is 2 tics higher. The trading range has been 4108 to 4020.
On the Natural Gas front the market is trading weather and after being oversold for seasonal prices we had a spike in prices. We will have to see how long this heat wave will last and give a much needed boost in prices for producers. In the overnight electronic session the August Natural Gas is currently trading at 1.829 which is 9 ½ cents higher. The trading range has been 1.864 to 1.733.
Have a Great Trading Day!