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 S&P Global Manufacturing at 8:45 A.M., ISM Manufacturing PMI, ISM Manufacturing Employment, ISM Manufacturing New Orders, ISM Manufacturing Prices, and Construction Spending MoM at 9:00 A.M., Export Inspections at 10:00 A.M., 3-Month & 6-Month Bill Auction at 10:30 A.M., Cotton System, Fats & Oils, and Grain Crushings at 2:00 P..M., and Crop Progress at 3:00 P.M.
On the Corn Front we had more than measurable rainfall across the Midwest this weekend. The saturating rains came with another price, high winds and tornados. Today’s Crop Progress may not show a measuring stick or magnitude of the damage. Funds on Tuesday showed they were net long positions in the major grains that we have not seen in 17 weeks. However, the data showed a surprise that the funds were net short 52,000 contracts. We must remember it is not what you plant but what you grow. As we move into the corn pollination stage weather remains critical. While fears of lesser yields will haunt the market and bring on volatility. In the overnight electronic session the July corn is currently trading at 561 ½ which is 7 cents higher. The trading range has been 563 ¼ to 553 ¼.
On the Ethanol Front Biofuels International wrote that the ethanol industry is nothing but persistent and motivated qualities which have served the sector well in the past and are set to play a central role in helping to secure a sustainable place within the net zero future of the world. During the pandemic crisis we did get an education of the many other uses ethanol can produce other than fuel, like alcohol and hand sanitizers to kill germs. We also have seen the trainwreck in America’s airports this weekend. But driving vehicles, trains and Greyhound busses show that blend in the gasoline will soften the blow of pain at the pump. There were no trades or open interest in ethanol futures.
Have A Great & Safe 4th of July!