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 Personal Income MoM (Mar), Personal Spending MoM (Mar), PCE Price Index MoM & YoY (Mar) Employment Cost Index QoQ Q1 Employment Cost-Benefits QoQ Q1, Employment Cost-Wages QoQ Q1 and Core Price Index MoM & YoY at 7:30 A.M., Chicago PMI at 8:45 A.M., Michigan Consumer Sentiment Final (Apr), Michigan 5-Year Inflation Expectations Final (Apr), Michigan Consumer Expectations final (Apr), Michigan Current Conditions Final (Apr), and Michigan Inflation Expectations Final (Apr) at 9:00 A.M., and Baker Hughes Oil & Total Rig Count at 12:00 P.M.
On the Corn Front the futures ended up slightly higher in yesterdays action. The Ukraine war and lower South American supplies helped fuel the rally to new highs. We also have to consider with plantings not coming out of the blocks, there is little margin for error and we will need help from Mother Nature if the US is going to fill the hole or void from those markets. Concerns about rains, tornadoes and derechos with 90 degree days and moisture in the Northeast & Midwest could help the crop mature but with more moisture could mean more severe storms. And that is what farmers and traders worry about in 2022. In the overnight electronic session the July corn is currently trading at 814 ¼ which is ¾ of a cent higher. The trading range has been 817 ¾ to 809 ½.
On the Ethanol Front higher ethanol use and strong exports offset a record 2021 corn yield. This comes at a time when ethanol producers applaud Governors’ year-round E15 move. There were no trades or open interest in ethanol futures.
On the Crude Oil Front more of the same old song. Off shore in the Gulf of Mexico we have the largest oil rig in the world that can produce 140 thousand barrels per day. Do the math… If the Keystone Pipeline, Anwar and pipelines were not forced out of business by the current administration we would not be talking about energy independence we would have it and that should be more than enough proof that this is a National Security issue. In the overnight electronic session the June crude oil is currently trading at 10671 which is 135 points higher. The trading range has been 10690 to 10454.
On the Natural gas Front Germany’s ban on Russian energy is supporting the market today after yesterdays down day. We will see if the EU sticks to their guns and not fund the Russian war machine. In the overnight electronic session the June natural gas is currently trading at 7.114 which is o.226 higher. The trading range has been 7.168 to 6.805.
Have A Great Trading Day!
Dan FlynnQuestions? Ask Dan Flynn today at 312-264-4374