We kickoff the day with Consumer Inflation Expectations and Export Inspections at 10:00 A.M., 3-Month & ^-month Bill Auction at 10:30 A.M., Fed Bostic Speech at 11:00 A.m. Fed Evans Speech at 11:30 A.M., 3-Year Note Auction at 12:00 P.M. and Crop Progress at 3:00 P.M. On the Corn front we have another frost warning tonight. This might be enough to have long speculators not just clear the decks just yet even after Friday’s fund short-covering rally, the funds are still overall have a short position as we head into tomorrows Crop Production USDA Supply/Demand data. We will see how it plays out in the day session. We also rallied with China’s purchase of 686,000 mt of corn for delivery to their homeland. Of that total 371,000 was purchases in old crop. Arlan Suderman of Intl FC Stone said, “Their previous purchase of corn  for new crop delivery, meaning they don’t really need it but corn is cheap. And, right now, it’s running a better than $1 cheaper than they’ve seeing there in China so economically it works but they have enough corn.” This also seen as a PR move as the Trump Administration let it be known they are frustrated over the lack of progress of Phase 1 of the U.S.-China trade agreement. They also have reserves at cheap prices keeps them in the drivers seat as the world continues to battle the coronavirus pandemic. In the overnight electronic session the July corn is currently trading at 321 ½ which is 2 ¼ cents higher. The trading range has been 322 ¾ to 320 ½.

On the Ethanol front more battles between big corn and big oil as blenders were hoping oil state governors to relax or even shelve the 2020 Renewable Fuels Standard’s blending obligations. As these two industries continue their well publicized clashes, they are both fighting their way out of this undeserved hole for both. In the overnight electronic session we had some activity with the July contract posting a trade at 1.089 which was down 0.014 with Open Interest at 273 contracts. While the June contract had 3 trades and is currently trading at 1.138 which is 0.048 higher. The trading range has been 1.138 to 1.115 with the market currently showing 1 bid @ 1.136 and 1 offer @ 1.136 with Open Interest at 137 contracts.

On the Natural Gas front we are coming in higher this morning with colder than normal temperatures blanketing parts of the lower 48. In the overnight electronic session the June contract is currently trading at 1.868 which is 4 and a ½ cents lower. The trading range has been 1.890 to 1.815.

Have a Great Trading Day!
Dan Flynn

Sorry for the short report today due to technical difficulties. If you have any questions call me at 888-264-5665 or e-mail me at [email protected]