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 Producer Price Index (PPI) at 7:30 A.M. and the Crop Production USDA Supply/Demand and WASDE data at 11:00 A.M.
On the Corn front the market continues to chip away at the stone, trading higher at the moment as bulls and bears prepare for the big data today. The Crop Production USDA Supply/Demand and all important WASDE data could shed some light on global exports and crop conditions. Yesterday’s weak Export Sales data across the board shows that this market is looking for signs of life and the WASDE data could be what the doctor ordered. After today’s data we will have Crop Progress data on Monday which the USDA will determine ratings and silkings in this years crop. And when and/or where the funds come back to press the market again. In the overnight electronic session the December corn is currently trading at 358 ½ which is 1 ½ of a cent higher. The trading range has been 359 ½ to 354 ¾. Today’s data could be a game changer in this complex.
On the Ethanol front the market will be watching the USDA data of corn for ethanol use and the focus on yesterdays headlines of demand diminishing yet again with more coronavirus fears in Florida and India demand declining, which leapfrogged the market into another fear that has not been completely substantiated. I understand we must be vigilant against this virus but the markets do tend to overreact. There were no trades posted in the front months of ethanol. Although the November contract posted a trade at unchanged and the August contract settled at 1.395 and is currently showing 1 bid @ 1.400 and 1 offer @ 1.560 with Open Interest hovering around 72 contracts.
On the Crude Oil front more of the same pandemic fears in Florida put this market back to panic mode again following the Stock Market and the tailspin in the complete Energy Complex followed. Adding speculation fears of less consumption and the genie didn’t leave the bottle yet. The next big U.S. driving day is Labor Day and unfortunately, a sign to the end of summer and it is not far away but a lot can happen to demand and consumption data in these coming weeks before we head into shoulder season. In the overnight electronic session the August crude oil is currently trading at 3916 which is 46 points lower. The trading range has been 3981 to 3854.
On the Natural Gas front even after a bullish EIA Gas Storage number the news of the pandemic and demand concerns swept into this market that had just started getting its legs back, as the market continued to push higher and very strong, only to end up in the red at the end of the day. Winter is not far away when we will be really thinking of coal, heating oil and natural gas and that should negate any moves to the downside in the Energy Complex. In the overnight electronic session the August natural gas is currently trading at 1.746 which is .033 cents lower. The trading range has been 1.790 to 1.737.
Have A Great Trading Day!