Crop Progress Expect Lower Acres. The Corn & Ethanol Report 07/23/19

We have Existing Home Sales at 9:00 A.M. with forecast expecting 5.33mln. Also more Earnings scheduled with Biogen Inc, United Technologies Corporation, Lockheed Martin Corporation and the Coca-Cola Company leading the way before the bell with many other giants. At 3;30 we will have the API Energy Stocks. Yesterday’s Crop Progress showed after a major resurvey of U.S. plantings to expect lower Corn acres and higher Soybean acres on the next August Crop report. We will continue to trade the weather card and the tricky forecasts that change the market psychology and give algorithm traders a field day. Again we are looking at Acres, weather and yields. Remember in this crazy weather year Mother Nature dealt us we could have an early frost or an Indian Summer during harvest.  In the overnight electronic session the December Corn is currently trading at 429 ¼ which is 2 ½ cents higher. The trading range has been 431 to 428 ½.

On the Ethanol front the August contract posted a trade at 1.481 which is .016 higher. The market is currently showing 2 bids @ 1471 and 1 offer @ 1.482 with 2 contracts traded and Open Interest dropping to 387 positions. We will rollover to the September contract tomorrow with that contracts Open Interest is higher than the August.

On the Crude Oil front we have a statement from Venezuela blaming the U.S. on their power grid problems. I have a novel approach to that socialist regime, “it takes Crude Oil to power the grid”! Yes that is the number 1 export that your government seized from the people who before Hugo Chavez got into power Venezuela was the number 1 economy in South America and socialism sucked that strong economy to it’s knees and the people want you out. Iran is in the fake news business as well and instead of conducting offensive military action we will wait and pile on more sanctions. Today we have API Energy Stocks in which we are expecting draws. The market is currently fluctuating from higher to lower in chop mode as we await the next headline. In the overnight electronic session the September Crude Oil is currently trading at 5992 which is 30 points lower. The trading range has been 5656 to 5574.

On the Natural Gas front the market is trying to gather some legs I a tight trading range as it is pushing to the highs. In the overnight electronic session the August contract is currently trading at 2.317 which is a ½ of a cent higher. The trading range has been 2.328 to 2.302.

Have a Great Trading Day!
Dan Flynn