We start off the day with Inflation Rate YoY & MoM (MAY), Export Sales, Initial Jobless Claims (05/JUNE) Jobless Claims 4-Week Average (05/JUNE), Core Inflation Rate MoM (MAY) and Continuing Jobless Claims (29/MAY) at 7:30 A.M. N.Y. Fed Treasury Purchases 4.5 to 7 years, EIA Gas Storage at 9:30 A.M., 4-Week & 8-Week Bill Auction at 10:30 A.M. Crop Production USDA Suppl/Demand and WASDE reports at 11:00 A.M., 30-Year Bond Auction at 12:00 P.M. and Monthly Budget Statement (MAY) at 1:00 P.M.
On the Corn Front we have the Big Three Reports today. While corn and soybeans planted are ahead of schedule, we must also remind ourselves it is June 10th.Not harvest time. We won’t gather data of yields at least to the 4th of July. Exports and weather will be in the marketplace not to mention INFLATION. With the South American crop weak and lack of global carryover paints a bullish picture to me. In the overnight electronic session, the July corn is currently trading at 693 ¾ which is 3 cents higher. The trading range has been 699 ½ to 687 ¾.
On the Ethanol Front the market hit pre-COVID levels and we will feel how popular this commodity will be when it is needed to be blended with gasoline in the summertime driving season with other countries want us to export ethanol to them and they play the card they are worried about carbon emissions. This will make corn and sugar prices rise. Business’ will be seeking a cheaper alternative to keep the process moving. In the overnight electronic session, there were no trades posted. The July contract settled at 2.460 and remains quiet with no market shown Open Interest is at 20 contracts and participation is showing the April contract is doing more business.
On the Crude Oil Front, we saw prices move ahead of $70 a barrel. Iranian supply is lower than the market anticipated. While OPEC+ is telling member countries not to cheat on production. The next target is $80 a barrel and may be achieved this summer and possibly $90 a barrel is not far away. And the futures market is telling us today. In the overnight electronic session, the July crude is currently trading at 7001 which is 5 points higher. The trading range has been 7015 to 6929.
On the Natural Gas Front, we have the EIA Energy Stocks at 9:30 A.M., Last week’s numbers were a disappointment to bulls and producers. The Thomson Reuters weekly poll with 109 analysts participating have estimates ranging from a build of 90bcf to 110bcf with the medium injection build at 97bcf. This compares to the one-year injection of 86bcf and the five-year average build of 87bcf. Plenty of reports today. Buckle Up Your Chinstrap.
Have A Great Trading Day!
Dan Flynn -