The Misery Fest Continues. The Corn & Ethanol Report 06/17/2022

We kickoff the day with Fed Chair Powell Speech at 7:45 A.M., Industrial Production MoM & YoY (May)  Manufacturing Production MoM & YoY (May) and Capacity Utilization at 8:15 A.M., CB Leading Index MoM (May) and Baker Hughes Oil & Total Rig Count at 12:00 P.M.

On the Corn Front do I dare say the bottom is in? In these days of extraordinary times we have some extreme bullish news. We can start with Brazil whose crop is facing a major drought and no exports coming out of the Ukraine, and now top it off with inflation and weather we have to contend with. I do anticipate the export market will pick up after yesterday’s Export Sales will pick up at a quick pace as importers are limited to who they buy from. Yesterday’s corn Export Sales were unimpressive at 5.% million bushels. As we head into the dog days of summer expect higher food prices as fast as your gasoline prices keep going higher and higher. In the overnight electronic session the July corn is currently trading at 798 ½ which is 10 ¼ cents higher. The trading range has been 799 ¾ to 786 ¾.

On the Ethanol Front we have an active cash market while the futures continue having zero. And we have production growing and supply shrinks as the US is a major player in the global ethanol market. This is just another signal of inflation hands over fists. And the House passes a bill to end restrictions on higher-ethanol fuels amid spiraling gas prices.

On the Crude Oil Front the President will soon depart to Saudi Arabia to beg them to pump more oil. He has also opened the door to negotiate imports from two adversary’s Iran and Venezuela. Without US oil on American soil we will see food prices skyrocket and will have more out of control inflation. When you see your 401 K diminish it is time to make are stock market stable and change the current administration’s energy policy. We have the Baker Hughes Oil & Total Rig Count which will be another telling story as refiners are running at 100% and we still have shortages on product. In the overnight electronic session the August crude oil is currently trading at 11639 which is 120 points lower. The trading range has been 11897 to 11687.

On the Natural Gas Front the market is trading lower. The negative news of Freeport LNG working to get online, it could not come as fast as the consumer is hoping for. This may seem a little bearish but overall it is bullish. And the heat wave should spur another rally which we could end up higher on the day heading into the long weekend if the stock market doesn’t fall out of bed. In the overnight electronic session the July natural gas is currently trading at 7.404 which is 0.060 lower. The trading range has been 7.588 to 7.220.

Have A Great Trading Day!

Dan Flynn

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