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 US Challenger Job Cuts (Jul) at 6:30 A.M., Export Sales, Initial Jobless Claims (31/Jul),Jobless Claims 4-Week Average (31/Jul), and Continuing Jobless Claims (24/Jul) at 7:30 A.M., Fed Waller Speech at 9:00 A.M., EIA Gas Storage and NY Fed Treasury Purchases 22.5 to 30 yrs. at 9:30 A.M. 4-Week and 8-Week Bill Auction at 10:30 A.M.
On the Corn Front we are no doubt trading a weather market as the forecasts change with the wind. Futures ended up lower with more rains and cooler temperatures in the parts of the Midwest. Continued talk of weaker South American crop. Brazil is concerned about lower supply while Argentine farmers are reluctant to sell. The weather and talk of lower yield are making this market sustainable at the moment. Funds are watching the market closely as to when to trigger a big position again so they may wait to pounce after the big reports next Thursday. With all of the conflicting weather forecasts I hope ow yields are not already being priced into the market. It is very quiet for now. In the overnight electronic session the December corn is currently trading at 549 which is 2 ¼ cents higher. The trading range has been 550 ½ to 545 ¾.
On the Ethanol Front production and stocks fell slightly with production down 10,000 barrels a day versus last week and stocks fell 84,000 barrels compared to last week. The August contract expires today and both the August and September contract settled at 2.220 with no market and zero Open Interest.
On the Crude Oil Front the prices are trading higher. The stakes of the free flow of oil in the Middle East is in jeopardy and Iran is the culprit of many strikes against shipping. In the overnight electronic session the September crude oil is currently trading at 6857 which is 42 points higher. The trading range has been 6893 to 6761.
On the Natural Gas Front the market has been trading mostly steady heading into the EIA Gas Storage. The Thomson Reuters poll with 17 analysts polled, estimates builds ranging from 14 bcf to 34 bcf.
This compares to the one-year injection of 55 bcf and the five-year average of 42 bcf.
Have A Great Trading Day!