The Corn & Ethanol Report 05/16/18

Grassley Goes After Pruitt

Good Morning!

We kickoff the day with Housing Starts & Permits at 7;30 A.M., Capacity Utilization and Industrial Production at 8:15 A.M., EIA Energy Stocks at 9:30 A.M. and Dairy Product Sales at 2:00 P.M. We also have earnings coming out with Macy’s leading the way. Republican Iowa senator Chuck Grassley said yesterday that Environmental Protection Agency (EIA) chief Scott Pruitt must scale back the use of biofuel waivers for small refineries, or else he will join Democratic lawmakers calling for his resignation. Republican senator John Barrasso from Wyoming whose home state represents several small refineries, was quoted the “EPA ignored this obligation (waivers) under the Obama administration and the courts rebuked the agency for it”. He further when on to say, “EPA is now following the law and must continue to do so.” This is going to be a fight with the Corn lobby and states with small refineries freeing them from the obligation to blend biofuels into the nations fuel. The Corn lobby supports expanding sales of E-15 in the Renewable Fuel Standard (RFS) and reducing the waiver program, but opposes counting exports toward volume quotas and I expect large volumes of exports to China. What a dilemma.

On the Corn front the rains and cooler than normal temperatures has once again slowed plantings. I do believe when the weather breaks and the fields dry the farmers will be near complete in plantings depending on where your land is on the map. In the overnight electronic session the July Corn is currently trading at 403 which is ¾ of a cent higher. The trading range has been 403 ¾ to 401.

On the Ethanol front the June contract is currently trading at 1.492 which is .001 higher. The trading range has been 1.492 to 1.482. 3 contracts traded and Open Interest at 629 is taking a back seat to the July 726 contracts. The June is currently showing 1 bid @ 1.487 and 2 offers @ 1.493.

On the Crude Oil front last night’s API showed builds over 4 million barrels with whispers that the build came from a release from the Strategic Petroleum Reserve (SPR) Products showed bullish numbers and supported the complex from any type of a break. The International Energy Agency(IEA) is chirping once again about demand destruction. We have heard Chicken Little chirp before. And what was the outcome? I still remain bullish overall. In the overnight electronic session the June Crude Oil is currently trading at 7101 which is 30 tics lower. The trading range has been 7134 to 7085.

On the Natural Gas front here we go again. The June contract is currently at 2.837 which is .001 of a cent higher. The trading range has been 2.844 to 2.813. Maybe tomorrows weekly Gas Storage data could shed light on the glut of Gas and bring reality back to the futures market and get closer to meeting the cash market.


Have a Great Trading Day!

Daniel Flynn     



141 W. Jackson Blvd. Suite 1340A, Chicago, IL 60604  |  (800) 769-7021  |  (888) 264-5665 (Direct)  |

A Subsidiary of Price Holdings, Inc. - an Employee Owned Diversified Financial Services Firm. Orders must be entered via direct verbal communication with a representative of our firm. We cannot be held responsible for orders left in any other manner.  PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. Investing in futures can involve substantial risk & is not for everyone. Trading foreign exchange also involves a high degree of risk. The leverage created by trading data-on margin can work against you as well as for you, and losses can exceed your entire investment. Before opening an account and trading, you should seek advice from your advisors as appropriate to ensure that you understand the risks and can withstand the losses. Member NIBA, NFA.

The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or futures. The PRICE Futures Group, its officers, directors, employees, and brokers may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction. Reproduction and/or distribution of any portion of this report are strictly prohibited without the written permission of the author.  

View The Corn & Ethanol Report Archives