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The Corn & Ethanol Report

Daniel Flynn

The Corn & Ethanol Report 04/25/19

Happy Anzac Day Australia and New Zealand

Good Morning!

More Earnings should show continued growth in the U.S. economy and we are making positive steps in the global economy with better days on the horizon. We have reports that start off the day with Advanced Durable Goods, Export Sales and Jobless Claims at 7:30 A.M. and we have EIA Gas Storage at 9:30 A.M. Tomorrow we have 1st Quarter GDP and investors continue sifting through the headlines and reality of what is ahead of us. I believe there are greater thins to come in the near future.

On the Corn front Export Sales continue to be a yawner after the government shutdown spewed the actual numbers after months afterwards which shows once again a couple of weeks off for government has consequences to the taxpayer that feeds them and it just goes to show you we are not undertaxed but government is OVERFED! We will see a change in the guard if the U.S.-China talks bear any fruit and the funds at historically record short positions will wake up the echoes and we will see a raging bull market. In the overnight electronic session the May Corn is currently trading at 344 which is 2 3/4 cents lower. The trading range has been 346 1/2 to 343 3/4.

On the Ethanol front this market is trying to pick up the passion with so many headlines and investors are concerned which arrow do I take? A left or a right? When we realize there is only an up or a down. As I continue to be redundant if a trade deal is reached this will affect Corn, Sorghum, Sugarcane and Rice to mention part of the commodities that will leave the bearish funds shrieking for cover. In the overnight electronic session the June Ethanol is currently trading at 1.305 which is .012 lower. The trading range has been 1.305 to 1.303 with 55 contracts traded and Open Interest rising to 1,136 contracts. The market is currently showing 1 bid @ 1.303 and 1 offer @ 1.307.

On the Crude Oil front the market awaits the next headline as negotiations develop in the trade talks and the waiver talks to see if everybody is on board. This outcome should bolster demand and put pressure on producers to meet that demand. And that shows signs of a growing economy instead of being stuck in drydock. In the overnight electronic the June Crude Oil is currently trading at 6579 which is 10 points lower. The trading range has been 6628 to 6554.

On the Natural Gas front we have the EIA Gas Storage report and the May contract expiring tomorrow which could force a squeeze-play in this oversold market. In the overnight electronic session the June contract is currently trading at 2.480 which is 2 cents lower. The trading range has been 2.518 to 2.481.

Buckle Up Your Chin Strap!

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Contact Dan at (888) 264-5665 or dflynn@pricegroup.com.