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Corn And Ethanol: 07/20/18

Published 07/20/2018, 09:37 AM
Updated 07/09/2023, 06:31 AM
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Late reports today and start at 2:00 P.M., beginning with Catfish Production, Cattle and Cattle on Feed followed by Milk production. On the Corn front we had our third consecutive higher close yesterday with the December Corn closing 4 cents higher. Last night we had catastrophic tornado damage in Iowa as the heavy storm to the north met with a storm from the south and the damage will be accessed in the coming days which should be supportive to prices. In the overnight electronic session the September Corn is currently trading at 354 which is 2 ¾ cents higher. The trading range has been 354 to 351 ¼. Exports should continue to be boosted with the U.S. having the cheapest prices in the world.

On the Ethanol front President Trump has said he is ready to impose an additional $505 billion tariff on Chinese goods. In this latest round of tariff talk. In the overnight electronic session the August Ethanol is currently trading at 1.427 which is .004 higher. The trading range has been 1.427 to 1.423. 8 contracts traded and Open Interest declined to 684 contracts versus the September gaining and overtaking the August with 719 contacts open.

On the Crude Oil front today is the Last Trading Day in the August Crude Oil contract. Saudi Arabia OPEC governor Adeeb Al-Aama will drop Crude exports 100,000 barrels a day. After an OPEC emergency meeting, this tells me they want to produce and export but not at these price levels. Expect more volatility with this news, tariff talks and rig counts at high noon (CST). In the overnight electronic session the September Crude Oil is currently trading at 6824 which is unchanged. The trading range has been 6891 to 6782.

On the Natural Gas front the market lost its steam after a bullish EIA Gas Storage number of 46 bcf when the street was expecting builds of 57 bcf. In the overnight electronic session the August contract is currently trading at 2.769 which is unchanged. The trading range has been 2.776 to 2.761.

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