Grain Rally Welcome. The Corn & Ethanol Report 07/18/18

We kickoff the day with Housing Starts & Permits at 7:30 A.M., EIA Energy Stocks at 9:30 A.M. and Dairy Product Sales at 2:00 P.M. On the Corn front we saw another consecutive drop in Corn ratings and with Europe and South America facing bad growing conditions this seems to be the wrong time to sell the Grains in the hole regardless of tariff talk. We saw in yesterday’s action that funds were short covering ahead of tomorrow’s Export Sales data. In the overnight electronic the September Corn is currently trading at 347 ¾ which is 1 ½ of a cent higher. The trading range has been 349 to 346 ¼.

On the Ethanol front the market is currently trading at 1.408 which is .005 lower. The trading range has been 1.412 to 1.408. With Corn looking oversold given the crop conditions abroad and in the U.S. while we have continued selling in Crude Oil and Gasoline pressuring any rally at the moment. Last night 6 contracts traded and Open Interest is at 839 contracts. The market is currently showing 1 bid @ 1.405 and 1 offer @ 1.410.

On the Crude Oil front the API showed slight builds in Crude Oil after whisper numbers expecting draws of 3 to 4 million barrels and the Crude sold off further. The market will wait to see if the EIA data is close to confirming the API data. In the overnight electronic session the August Crude Oil is currently trading at 6756 which is 52 points lower. The trading range has been 6787 to 6737.

On the Natural Gas front the market still looks like we will see another good leg down with weather temperatures not supportive as we move closer to shoulder season and a continued weak cash market. In the overnight electronic session the August Natural Gas is currently trading at 2.738 which is .002 of a cent lower. The trading range has been 2.747 to 2.730.

Have a Great Trading Day!
Dan Flynn