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 MBA Mortgage Applications (07/May) and MBA 30-Year Mortgage Raye (07/May) at 6:00 A.M., CPI and Real Earnings at 7:30 A.M., Fed Clarida Speech at 8:00 A.M., EIA Gas Storage at 9:30 A.M., Crop Production USDA Supply/Demand and WASDE Report at 11:00 A.M., 10-Year Note Auction and Fed Bostic Speech at 12:00 P.M., Fed Harker Speech at 12:30 P.M., Monthly Budget Statement (Apr) and ISM New York Index at 1:00 P.M.
On the Corn Front the market started out weak and ended up 10 ½ cents higher in choppy trade in a wide trading range. All the short covering may have induced more buyers as we head into today’s Crop Production USDA Supply/Demand and WASDE numbers. Weather and Chinese buying are other factors that have come into play. In the overnight electronic session, the July corn is currently trading at 728 ½ which is 6 ¼ cents higher. The trading range has been 731 ¼ to 723.
On the Ethanol Front there were no trades posted in yesterday’s trading session or in the overnight. The market settled at 2.34 and this market is waiting for a lot of smoke to clear with their fight with refineries and the Environmental Protection Agency (EPA.) This market is waiting on Inventories which was predicted to be up .6 and Production predicted to be up .3. The USDA will also have the corn to ethanol rise today on the monthly report.
On the Crude Oil Front, it was a crazy choppy day in this market in yesterday’s trading session as the Dow Jones posted its biggest loss since February. The API data showed draws in crude at the tune of 2.533 million barrels, Cushing -1.209M while huge builds in gasoline stocks 5.640 million barrels and distillates down 872 thousand barrels. The gas build could be a sign that energy companies are trying to give the East Coast some relief and ship by rail. Also, the Iranian Revolutionary Guard is not playing nice with U.S. Coast Guard and U.S. Navy ships in the Strait of Hormuz adding risk premium to the market. In the overnight session the June crude oil is currently trading at 6570 which is 42 points higher. The trading range has been 6600 to 6498.
On the Natural Gas Front, the market was mostly quiet in yesterday’s action, and it seems shoulder season is in full gear even with below normal temperatures. I would think electricity may have had a spike with the use of space heaters during the night. The market is awaiting the dog days of summer. Pipelines will be wary with the energy companies monitoring the Colonial Pipeline ransomware crime and they are keeping their cards close to the vest. In the overnight session the June Natural Gas is currently trading at 2.932 which is .023 lower. The trading range has been 2.958 to 2.930.
Have A Great Trading Day!
Catch me On Rural Radio tomorrow at 7:30 A.M. discussing Export Sales and the Energy markets on Channel 147 on Sirius XM.
Questions? Ask Dan Flynn today at 312-264-4374