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 Inflation Expectations (May) at 5:00 A.M., Core PPI MoM & YoY (May), PPI MoM & YoY (May) at 7:30 A.M., IBD/Tipp Economic Optimism at 9:00 A.M., 52-Week Bill Auction at 10:30 A.M. and Day 1 of the FOMC Meeting.
On the Corn Front we have to assess the damage caused to grains in last nights severe thunderstorms with high winds, lightning and tornados. The market will react to the FED decision on rates tomorrow. As we inch closer to the summer solstice two counties in southern Georgia showed rust and Alabama and Alabama is concerned as well. In the overnight electronic session the July corn is currently trading at 765 ¼ which is 4 cents lower. The trading range has been 767 ¾ to 760. The market is attempting a rebound but after Friday’s negative CPI number and we look at Inflation and economic optimism and tomorrows FED decision.
On the Ethanol Front distillers dried grains (DDG’s) are a co-product of dry-milled ethanol production.US ethanol plants have the capacity to produce more than 17 billion gallons of ethanol and 35 million tons of DDG. DDG’s from corn contain, on average, 30% protein, 10% fat and 7% fiber. Approximately 18 pounds of DDG’s (10% moisture content) are produced from one bushel of corn. Once again we have no activity in ethanol futures with a continuing active cash market.
On the Crude Oil Front the futures edged higher yesterday amid global supply concerns, but near-term demand pushed products lower. The market turned following media reports about Libyan Oil Minister Mahamed Oun stating the country’s crude out put was down 1.1 million barrels per day. Escalating protest in Libya had shut-in more than half it’s oil output as of last Friday. The political crisis in Libya is coming out at a time when the world has little buffer to offset additional disruption. In the overnight electronic session the July crude is currently trading at 12240 which is 147 points higher with a trading range of 12258 to 12038.
On the Natural Gas Front I have to change my report due to breaking news that Freeport LNG targets a partial restart in about 90 days causing prices to fall hard. In the overnight electronic session the July natural gas is currently trading at 7.164 which is 1.445 lower. The trading range has been 8.889 to 7.041. We will keep you posted on this story.
Have A Great Trading Day!
Dan FlynnQuestions? Ask Dan Flynn today at 312-264-4374