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 Redbook YoY (31/JUL) at 7:55 A.M., IBD/TIPP Economic Optimism (Aug), Factory Orders MoM (Jun) and Factory Orders ex Transportation (Jun) at 9:00 A.M., NY Fed Treasury Purchases 10 to 22.5 yrs. At 10:30 A.M., 42-Day Bill Auction at 10;30 A.M., Fed Clarida Speech at 1:00 P.M., API Energy Stocks and LMI Logistics Managers Index Current at 3;30 P.M.
On the Corn Front we had a nice turnaround in Monday’s trading session. Corn settled on strong close to boot. More drier and warmer temperatures are forecasted. Brazil’s crop woes continue and U.S. exports should pick up as we brace for the August 12th report and all traders will be thinking yields. In the overnight electronic session the December corn is currently trading at 555 ½ which is 3 ¾ cents lower. The trading range has been 557 ¼ to 554 ½.
On the Ethanol Front corn for ethanol use for June dropped slightly from the previous month, but way ahead of last year with the lockdown in full force. The next USDA corn for ethanol use is August 14th. There were no trades posted in the overnight electronic session. The September contract settled at 2.220 and is currently showing no market and 0 Open Interest.
On the Crude Oil Front the market was trading on fears of the unknown but a different headline to stir the pot. Monday’s washout could bring another rally if traders believe the market was overdone on the news. And the API Energy Stocks could be the spark that ignites another rally. In the overnight electronic session the September crude oil is currently trading at 7167 which is 41 points higher. The trading range has been 7173 to 7137.
On the Natural Gas Front the market is trying to roar back after profit taking on last weeks on negative news. This market has become a hot market with weather both hot and cold. People more and more do not want there houses running on near all electric power. If it is cold they want heat and if is hot they want the power grid to sustain volatile demand and not have rolling blackouts. In the overnight electronic session the September natural gas is currently trading at 3.975 which is 0.40 higher. The trading range has been 3.981 to 3.959.
Have A Great Trading Day!