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 Unemployment and U.S. Trade Balance at 7:30 A.M., Factory Orders at 9:00 A.M. and Baker Hughes Oil & Total Rig Count at 12:00 P.M.
On the Corn Front the market is trading the volatility like the rest of the commodity sector. This market showed its potential upside after Wednesday’s Grain Stocks and Planted Acreage had some traders surprised the bullishness in the numbers. We can base this on basic fundamentals, supply and demand with weather as usual thrown in the mix. In the overnight Electronic session the December corn is currently trading at 590 ¾ which is 1 ¾ cents higher. The trading range has been 597 ½ to 587.
On the Ethanol Front the market is still reeling off the positive production and supply numbers as ethanol exports look to be on the rise with global demand dictating more ethanol vehicles, which will produce more demand. There were no trades posted in the overnight electronic session. The August contract settled at 2.480 and is currently showing no market with Open Interest at 2 contracts.
On the Energy Front crude oil is sensitive of the OPEC and OPEC+ meeting be prolonged to make a solid agreement on production. It will be a long weekend and barring any headline traders may not want to carry a heavy position going into the holiday weekend.
The market is also concerned about Hurricane Elsa a category 1 at this writing. The track has it hitting Florida or bouncing of into the Gulf of Mexico. Traders and producers will be watching the 1st hurricane of the season after a busy season last year.
Have A Happy & Safe 4th of July!
Have A Great Trading Day!