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 kickoff the day with Trade Balance (Apr), Exports (Apr) and imports (Apr) at 7:30 A.M., Redbook YoY (o4/June) at 7:55 A.M., 3-Year Note Auction at 12:00 P.M., Consumer Credit Change (Apr) and API Energy Stocks at 3:30 P.M.
On the Corn Front the Goldman roll begins tomorrow while traders will be watching US central Bank action in raising interest rates. The estimates remain they will increase 50 basis points. The USDA says as of Sunday 94% of the US corn crop is planted with the five-year average 92%, with 78% emerged, compared to 81%on average and 73% of the crop is in good to excellent , up from the first rating in 2021. We can expect volatility and don’t forget we have the Crop Production USDA Supply/Demand and WASDE data on Friday which could change the picture. I still remain firmly bullish but this market is like any other market and is vulnerable to breaks to the downside. In the overnight electronic session the July corn is currently trading at 748 which is 5 ½ cents higher. The trading range has been 748 ½ to 735.
On the Ethanol Front Oilprice.com wrote a nice piece of what Biden’s ethanol mandates mean for you. They are pushing for the most ethanol used ever, while the more to blend more ethanol to gasoline has been met with mixed responses. Farmers are cheering for the move, though customers could face higher food prices and seeing little relief at the pump. Tonight’s API data should be interesting in this self-inflicted runaway energy and food prices bull market. Tomorrow we will get production and stocks on hand data. There was zero activity in ethanol futures but that could change with an active cash market.
Have A Great Trading Day!
Dan FlynnQuestions? Ask Dan Flynn today at 312-264-4374