NAFTA Deadline Today. The Corn & Ethanol Report 05/17/18

We kickoff the day with Export Sales and Jobless Claims at 7:30 A.M. followed by EIA Gas Storage at 9:30 A.M. The NAFTA deadline is today but it looks like we are not even close in negotiations to get the ball rolling. On the Corn front we may have had a good buy late in yesterday’s trading session. Rumors are swirling that we may see more acres planted than previously expected. Dryer weather is forecasted in the Mid-West and funds are buying for now and the Corn market is the “leader of the pack” in the Grain complex. In the overnight electronic session the July Corn is currently trading at 401 which is 1 ¾ of a cent higher. The trading range has been 402 to 398 ½.

On the Ethanol front the June contract posted a trade at 1.478 which is .007 higher. The market is currently showing 1 bid @ 1.475 and 3 offers @ 1.478 with 3 trades changing hands and Open Interest at 610 contracts.

On the Crude Oil front the U.S. dollar seems to have slowed down on the rally since the excellent Retail Sales data on Tuesday. With the geo-political front and sound fundamentals with strong global demand and tight supplies the market is soaring to new highs. We also have June Crude Oil Option Expiration today. In the overnight electronic session the June contract is currently trading at 7214 which is 65 points higher. The trading range has been 7230 to 7149.

On the Natural Gas front we have the weekly EIA Gas Storage data and the Thomson Reuters weekly poll with 19 analysts participating expect builds anywhere from 99 billion cubic feet to 118 (bcf) with the median of 105 (bcf). This compares to the one-year of 74 (bcf) and the five-year average of 89 (bcf) In the overnight electronic session the June Natural Gas is currently trading at 2.805 which is 1 cent lower. The trading range has been 2.822 to 2.800.

Have a Great Trading Day!
Dan Flynn