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 kickoff the day with Export Inspections at 10:00 A.M., 3-Month & 6-Month Bill Auction at 10:30 A.M., and Crop Progress at 3:00 P.M.

The Senate passed the Bill without a single Republican vote. The Vice President ended the tie with her vote to end the extra-inning affair. I seem to remember in history we fought a Revolution over taxation without representation. There is an economic golden rule, do not raise taxes in a recession that will only lead to stagflation. While the White House is trying to redefine the definition of inflation and recession. Do I get a money back guarantee? I guess they are recession deniers.

On the Corn Front we had a heavy market with rains overnight and more rains forecasted today. With hot and wet weather conditions this ideal growing conditions for corn. Last week House Speaker Nancy Pelosi visit to Taiwan which triggered an expected negative response from China and they are escalating their war games as I write. The Biden Administration said it gave no green light on the trip. Leaving voters to wonder Who’s in charge at 1600 Pennsylvania Avenue? The Ukraine exports have begun with only 5 or 6 vessels setting sail. I do believe the market exaggerated the bearishness of the exports. Brazil will be closing 2022 exports soon. This will force buyers hands to the US grain markets including China. In the overnight electronic session the September corn is currently trading at 603 1/4 which is  7 cents lower. The trading range has been 610 ¼ to 601 ¾.

On the Ethanol Front Brazil is moving away from sugarcane based ethanol to corn and other grains for blends. They will also cease grain exports as they weigh what their domestic use will be. India is moving to have higher blends of ethanol to gas as the greenhouse gas gang continues. The ethanol futures remain in drydock.

On the Cruse Oil Front the global diesel crunch is expected to only get worse, reported by Tsvetana Paraskova with OILPRICE.com. With a European ban on Russian crude and fuels looming, diesel markets are set to tighten even further despite weak economic growth. Distillate fuel inventories in the U.S. just witnessed the biggest draw down for this time of year in at least 32 years. This is going to further test Americans patience, especially after the taxation bill passed in the Senate. In the overnight electronic session the September crude oil is currently trading at 8974 which is 107 points lower. The trading range has been 9017 to 8722.

On the Natural Gas Front we are down hard in the early going, despite entering the heating season, which Europe is struggling with a natural gas shortage, and demand with distillates will only climb. It looks like the Biden administration’s energy policy put the cart before the horse once again In the overnight electronic session the September natural gas is currently trading at 7.671 which is 0.393 lower. The trading range has been 7.917 to 7.596.

Have A Great Trading Day!

Dan Flynn

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