About The Author

Daniel Flynn

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 S&P Global  Composite PMI Flash (Apr), S&P Global Manufacturing PMI Flash (Apr) and S&P Global Services PMI Flash at 8:45 A.M., Baker Hughes Oil & Total Rig Count at 12:00 P.M., Cattle on Feed and Cold Storage at 2:00 P.M. and IMF/World Bank Spring Meetings.

On the Corn Front the futures ended lower with profit taking in the mix. Even with a decent export number, traders can go numb as these markets can do a complete turnaround in a day regardless of the bullish fundamentals with a weak South American export market and the Ukraine exports taken off the board, the US market will have to fill in the void in the global marketplace. Also with weather we are contending with in the Corn Belt and already behind in plantings add to the bullish fundamentals. We have Las Trading Day on May grain options today. In the overnight electronic session the July corn is currently trading at 802 ¼ which is 7 cents higher. The trading range has been 804 to 788.

On the Ethanol Front predictions are dropping for corn use for ethanol use to drop 25 million bushels due to rail logistics. With President Biden waiving rules of restricting ethanol blending to E15 in the summer months. Fuel analyst Patrick De Haan with Gas Buddy says ethanol does not contain the same energy as gasoline and noted he does not believe you will notice much difference in Miles Per Gallon. Mr. De Haan also said going up from E10 to E15 is really negligible and most people would not notice a decrease in energy content in the form of fuel efficiency. There were no trades or open interest in ethanol futures.

On the Crude Oil Front the EU closes in on the Russian oil ban, but most question how tough it will be. Diplomats fear support may be watered down to win support from more hesitant countries, such as Germany and Hungary. Concerns over Russia and Libya supply disruptions is another aspect the market is looking at. “It’s not as easy to trade as it was a couple weeks ago,” said Phil Flynn senior analyst with the Price Futures Group. He went on to say, You have to risk more, and that may be by design with hedge funds and algo funds trading more.” I do believe with all of this goofiness in volatility the market will trade higher in the long run. Let’s face it 8.5% inflation is not cutting it. In the overnight electronic session the June crude oil is currently trading at 10292 which is 87 points lower. The trading range has been 10422 to 10122.

On the Natural Gas Front the political football continues as the Ukraine lobbies for cuts in Nord Stream 1 gas shipments. With the administrations war on fracking, fossil fuels, pipelines etc. We are realizing what a pickle we are in with are own energy to tap into. The administration should welcome and accept the oil industry with open arms other than to kill it. I hate to be redundant but this was all self-inflicted.

I hope all the go green people realize all the energy the US is importing is not as clean as US energy because US Oil has to follow strict regulations by these go green people. How is that working out for you? In the overnight electronic session The June natural gas is currently trading at 6.939 which is 0.157 lower. The trading range has been 7.214 to 6.888.

Have A Great Trading Day!

Dan Flynn

Questions? Ask Dan Flynn today at 312-264-4374