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 Market Manufacturing PMI Final at 8:45 A.M., Construction Spending and ISM 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., Fed Chair Powell Speech at 1:20 P.M., Cotton System, Fats & Oils and Grain Crushing at 2:00 P.M., Crop Progress at 3:0 P.M. and Total Vehicle Sales at 7:00 P.M.
On the Corn Front the Drought Monitor confirmed the Greater Chicago Area is in a drought. This could be seen across the Plains and fears sored through the Corn Belt and many other areas will be watching closely. We are getting showers this morning and more expected on Thursday but may have little effect as forecasters are not expecting many inches of rain. The market is also waiting on a bullish Export Sales data and hoping for another positive price result. In the overnight electronic session, the July corn is currently trading at 688 which 14 ¾ cents higher. The trading range has been 698 to 683. The Spread between the May contract is about 65 cents May over which the May current price at 753 ¾.
On the Ethanol Front Indiana Gov. Eric Holcomb has vetoed a bill that would have increased labeling for ethanol fuel at gas stations, calling it “unnecessary and confusing.” Coming off a beautiful weekend in Chicago I noticed a lot a foot traffic and outdoor restaurants packed and a lot of vehicle traffic as well. People getting out again was cool to see. Memorial Day is usually deemed the beginning of the summertime driving season.
If the weather holds, we will see an even more bullish attitude on crude and ethanol and corn is not going to make prices cheaper anytime soon. There were no trades posted in the overnight electronic session. The May contract settled at 1.330 and is currently showing no market with Open Interest at 20 contracts.
Have A Great Trading Day!