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 the day with Redbook YoY & MoM at 7:55 A.M., 42-Day Bill Auction at 10:30 A.M., 52-Week Bill Auction at 12:00 P.M. and the API Energy Stocks at 3:30 P.M.
On the Corn Front we continue to mount the horse that has pushed the rally. China buying and carryover slim to none not to mention a thirst for ethanol globally has fed this market bullish news. How do you keep a bullish market going? You feed it with more bullish news and the market is digesting that. Brazil’s poultry farmers imported corn from Argentina just to show you how scarce this product will become in the summer months. Back in the U.S. we have weather planting concerns that have not been on the farmer’s side. Plantings are not the tip of the iceberg; it is not what you plant but what you grow. This is what to expect this year with forecasters calling for a hot and dry summer in the Plains and Western Corn Belt too boot. In the overnight electronic session, the May corn is currently trading at 598 which is 6 cents higher. The trading range has been 599 ¾ to 592 ¾. We should punch through 600 and the market new bulls will hop along.
On the Ethanol Front the market is seeing the global desire to use ethanol and our export market is willing to fulfill their needs. This quiet market may emerge into one of the hotly contested market this summertime driving season and 2021. We will see competition from South America, and we will be ahead of the game as far as exports. There were no trades posted in the overnight electronic session. The May contract settled at 2.140
And is currently showing no market with Open Interest down to 25 contracts.
On the Crude Oil Front the May contract expires today. The crude oil is moving thanks to the closing of the Keystone Pipeline XL and all that business went to Russia. And now they have their sights on the Ukraine. What a nice precedent not President this guy has formed losing energy business to countries that are foe. In the overnight electronic trading session, the June crude oil is currently trading at 6377 which is 34 points higher. The trading range has been 6438 to 6338.
On the Natural Gas Front, the new administration after killing the Keystone Pipeline XL and now is moving to crack down on the other energy sector. Now natural gas comes from the frond we all breathe it and now the guy wants to take out methane gases. We have already seen what the Keystone pipeline cost us dollar for dollar and now they want to regulate or destroy the best export market we could have. What type of science is that? In the overnight electronic session, the May natural gas is currently trading at 2.729 which is 2 cents lower. The trading range has been 2.759 to 2.719.
Have A Great Trading Day.
Call me anytime.
1-888 264 5665 or email email@example.comQuestions? Ask Dan Flynn today at 312-264-4374