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 Export Sales, Jobless Claims, and Existing Home Sales at 7:30 A.M., EIA Natural Gas Storage at 9:30 A.M., 4-Week and 8-Week Bill Auction at 10:30 A.M., and 5-Year TIPS Auction at 11:00 A.M.
On the Corn Front the market continues to drive higher like the rest of the grain complex. Old crop surpassed $6 and new crop bids are coming close to $5. Speculators and traders are wondering how long this could last. The answer is we can go even higher with weather slowing South America plantings, and a slim to no carryover market. Not to mention South America weather issues effecting the global markets. There are also predictions for drought conditions in the Plains and Midwest. In the overnight electronic session, the May corn is currently trading at 635 1/ which is 9 ¾ cents higher. The trading range has been 637 ½ to 623 ½.
On the Ethanol Front higher prices and supply issues have this market off to another tough start. With production an issue and Brazil producing more corn-based ethanol as they were mainly focused on sugar-based ethanol will make this market more competitive and should bring higher prices along with the energy and grain sectors. This market will continue to pick up speed as grains and energy prices move forward. There were no trades posted in the overnight electronic session. The May ethanol settled at 2.199 and is currently showing no market with Open Interest at 25 contracts.
Have A Great Trading Day!