We kickoff the day with ISM New York Index (APR) at 8:45 A.M., Consumer Inflation Expectations (APR) and Export Inspections at 10:00 A.M., 3-Month and 6-Month Bill Auction at 10:30 A.M., Fed Evans Speech at 1:00 P.M. and Crop Progress at 3:00 P.M.

On the Corn Front we are easing off 8-year highs heading into Wednesday’s USFA Supply/Demand report. Chinese importers bought 1.36 million tons of U.S. corn on Friday according to the USDA. Traders will be watching the demand picture. Weather forecasts had frost predicted last night and it was unseasonal cold last night, and forecasters expect two more nights of it in certain growing areas. Any frost damage with today’s Export Inspections could show more demand and a crimp in supplies and that will juice demand were buying for product will see several new destinations. When product is scarce buyers want in at a larger scale than they normally would. It is like the cabbage patch doll or any other toy fad around Christmas, you have to get one for each kid you have and then there are shortages. Traders are also watching with high corn prices that could transfer more buying to animal feed from wheat. South Korea’s Feed Leaders Committee (FLC) purchased 60,000 tons of animal feed wheat expected to be sourced from the Black Sea region in a private deal. In the overnight electronic session, the July corn is currently trading at 725 which is 7 ¼ cents lower. The trading range has been 730 ¾ to 721 ¼.

On the Ethanol Front the market is quiet with the Supreme Court debating the ethanol war between farmers, oil, and the Environmental Protection Agency (EPA) powers and authority over the two because they were appointees and not voted into office. There may be a wait on this outcome and Ethanol is waiting on Wednesday USDA report data. There were no trades posted in the overnight electronic session. The June contract settled at 2.340 and is currently showing no market with Open Interest remaining at 20 contracts.

On the Crude Oil front prices gained after cyberattacking on U.S. pipelines. The Colonial Pipeline system transports 100 million gallons a day or 45% of fuel consumed on the East Coast. The pipeline system taking fuel from refineries in the Gulf Coast to the New York metro area. It also delivers gasoline, diesel, jet fuel and heating oil and serves U.S. military facilities. The cyber-attack is linked to a criminal gang. According to Colonial, the attack involved ransomware, where the attacker seizes control of the computer system to demand a payoff. Colonial has not said what was demanded, who made the demand, or whether the ransom has been paid. The FBI, DOE and Cybersecurity and Infrastructure Security Agency (CISA) said they are working in collaboration with Colonial to get to the bottom of the attack. In the overnight electronic session, the June crude oil is currently trading at 6527 which is 37 points higher. The trading range has been 6575 to 6503.

On the Natural Gas Front, the fundamental forecasts are favorable to capping gains, but bulls are still eyeing summer heat according to James Hyerczyk with FX Empire. The market finished higher last week with help from a bullish storage report. Other factors pushing the market is European demand for liquified natural gas (LNG) and elevated demand from Asia. And we could boost prices with domestic use this summer when air-conditioners are forecasted to be working overtime in the summer heat. In the overnight electronic session, the June natural gas is currently trading at 2.933 which is .025 lower. The trading range has been 2.971 to 2.927.

Have A Great Trading Day!
Dan Flynn

Any comments or questions feel free to call me at 1-888-264-5665 or 312-264-4374 cell 312-213-7678 e-mail [email protected].