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 Dallas Fed Manufacturing Index at 9:30 A.M., Export Inspections at 10:00 A.M. 3-Mont & 6-Month Bill Auction at 10:30 A.M., 2-Year Note Auction at 12:00 P.M., Crop Progress at 3:00 P.M.
On the Corn Front drought and recession fears has the grain marketplace moving counterclockwise versus cause and effect. Busy week in grains with Export Inspections this morning and Crop Progress at 3:00 P.M. With a forecasted continuation of dryness un the Central US and rains that were needed but most likely weren’t saturating enough for soil moisture. On Friday we have Grain Stocks and the all important Planted Acreage at 11:00 A.M. More global drought concerns as China will have searing heat and soil moisture deficits widening in the next 10 Days. That could help export markets as they could be opening shortly, however, two major concerns remain with weather and yields. Locally we had rains yesterday in the Chicago area but weather models still expect warm and dry weather into Friday. A new ridge riding storm system will produce showers across the North Midwest with saturation key, while below normal rainfall will persist in the Central & Southern Midwest. Corn open interest fell sharply in Friday’s action due to long-liquidation. Corn open interest fell 32,425 contracts while soybeans fell 17,697 and wheat down 17,908 contracts. Let’s not forget wheat traders will be focusing on the rising tensions within Russia and how that could effect the Russian wheat exports and drive US prices. In the overnight electronic session the July corn is currently trading at 632 ¼ which is 1 ½ of a cent lower. The trading range has been 640 to 621.
On the Ethanol Front the US Grains Council supports the opening of first E7 fueling station in Japan. The USDA’s arm the Agricultural Trade Mission (USDA’s ATM). The Grains Council delegation witnessed the opening of the firstE7 fueling station in Japan. The unveiling of this pioneering project showcases the country’s commitment to adopt sustainable fuel solutions. Nahagawa Bussan, a gasoline blender and retailer that has been selling E3 gasoline for more than 10 years, around 40 million gallons per year, which includes 1.2 million gallons of ethanol from the United States. Another exciting export and we must remember biofuels and ethanol has many more uses other than aviation and fuel gasoline. There were no trades or open interest in ethanol futures.
Have An Excellent Trading Day!