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
Hope you all had a good weekend. We start of the day with Consumer Inflation Expectations and Export Inspections at 10:00 A.M., Fed Williams Speech, 3-month & 6-month Bill Auction at 10:30 A.M., Monthly Budget Statement at 1:00 P.M. and Crop Progress at 3:00 P.M.
On the Corn front the USDA reported Friday that China made the second-largest single-day U.S. corn purchase. The market remains focused on weather and exports and acreage. After a not so flattering export number on Thursday traders looked to weather and acreage with also wondering what will boost the export market watching South America and the Ukraine. Traders and farmers are pondering, what is fair market value? Well where the U.S. dollar is trading versus other currencies and a good looking crop poised to be a another bumper crop we sellers come back to the table. We also had news Friday the President Trump said Phase Two of the Trade Deal is unlikely as the U.S.-China relationship has been severely damaged. So we could se funds shorting come back into play. In the overnight electronic session the December Corn is currently trading at 336 ¾ which is 8 cents lower. The trading range has been 342 to 334 ¾.
On the Ethanol front traders have realized what stabilized ethanol exports in April and May, which was due to industrial-use of hand sanitizers and disinfectants that use ethanol as an ingredient. And as a result was an awareness how the environment, human health and economic benefits apply outside the fuel industry. In the overnight electronic session the August ethanol posted a trade at 1.320 which is unchanged. The market is currently showing 1 bid @ 1.303 and 1 offer @ 1.320 with 1 contract traded and Open Interest at 70 contracts.
On the Crude Oil front the market keeps flirting with $41 a barrel, only to tail off on more negative pandemic news and other demand fears that keep creeping this market out. We Tropical Storm Fay finally out of the way and we do not see any Tropical Activity brewing in the Atlantic for at least 48 hours, traders will be looking at tomorrows API Energy Stocks. In the overnight electronic session the August crude oil is currently trading at 4025 which is 30 points lower. The trading range has been 4053 to 3966.
On the Natural Gas front this market recently got its legs and rallied, but the rally was short-lived with the confusion of negative pandemic news stopped the euphoric rally on its heels. With weather forecast calling for more moderate temperatures, that also dampened bulls prospects as we march closer to shoulder season which made this rally hit a wall. In the overnight electronic session the August natural gas is currently trading at 1.799 which is .006 lower. The trading range has been 1.814 to 1.751.
Have a Great Trading Day!