Bullish Breakout on Grains. The Corn & Ethanol Report 06/17/19

We have a Full Moon and Grain prices are higher! What are the odds? Another question is where will we be at Harvest Moon. Today we have Export Inspections at 10:00 A.M., NOPA Crush at 112:00 A.M. and Crop Progress at 3:00 P.M. and I believe the market digested all of what will be and is currently a perfect indicator of what the results will be with acreage and yields. This will not be a bumper crop. And it took until Mid-June for the market to grasp it while the funds continue to puke out record short positions. You cannot fight acreage weather and yields forever. In the overnight electronic session the July Corn is currently trading at 460 which is 7 cents higher. The trading range has been 464 ¼ to 458.

On the Ethanol front the July contract is currently trading at 1.632 which is .022 higher. The trading range has been 1.645 to 1.627. The market is currently showing 1 bid @ 1.629 and 5 offers @ 1.663 with 38 contracts traded and Open Interest is at 559 positions.

On the Crude Oil front  we had a quiet risk on weekend which took some premium out of the market. Iran continues to boast anti-American and anti-Freedom to other countries while neglecting their own people. If the mullahs want to meet their maker I have the perfect roadmap. The market focus will be looking at tomorrows inventory data. We must remember that Russia and Saudi Arabia continue production cuts. The International Energy Administration (IEA) has spoken and said we will have a global economic slowdown which will dry up demand. I do not see that on the horizon and the IEA has been wrong several times before. We also must remember we have the G-20 meeting in less than two-weeks and if the U.S. and China can agree to terms the markets will explode to the upside. In the overnight electronic session the July Crude Oil is currently trading at 5224 which is 27 points lower. The trading range has been 5274 to 5177.

On the Natural Gas front it looks like the technical rally is over. There is so much product and not a lot of passion to support higher prices. In the overnight electronic session the July contract is currently bouncing back to unchanged at 2.387. The trading range has been 2.418 to 2.357.

 Have a Great Trading Day!
Dan Flynn