Welcome to August and the Dog Days of Summer
The information highway is giving us information again. With Apple (NASDAQ:AAPL) earnings and more earnings we have several reports today starting with Personal Income at 7:30 A.M., Construction Spending and ISM Manufacturing Index at 9:00 A.M. At 2:00 P.M. we have Cotton System, Fats & Oils and Grain Crushings. At 3:30 P.M. we have the weekly API Energy Stocks. So let’s buckle up our chin strap and get to work. Yesterday’s Crop Progress report showed little indication that our crops are even close to the records we shattered the past few years. Traders are banking on the American farmer versus Mother Nature. Not a coin flip I would like. In the overnight electronic session the September Corn is currently trading at 369, which is 1 ¾ of a cent lower. The trading range has been 371 ½ to 367 ¾. Much-needed rain is forecasted for Mid-West but could be another false alarm.
On the Ethanol front the U.S. government pushed a requirement for more biofuels to be blended with the country’s fuel supply which boosted the Soybean Oil in yesterday’s trading session. This could be more of a witches brew as the energy markets have woken up from a slumber and we move closer to harvest. In the overnight electronic session the September Ethanol is currently trading at 1.525, which is .024 cents lower. The trading range has been 1.540 to 1.523. We could see more drama in this market with Energies trading hot and heavy and we are so close to harvest.
On the Crude Oil front, “do I dare say we are overbought?” The technicals say yes but the fundamentals paint a completely different picture. In the overnight electronic session the September Crude Oil is currently trading at 4978, which is 39 points lower. The trading range has been 5043 to 4974. Look to buy value at support prices.
On the Natural Gas front weather factors continue to pressure this market. Yesterday’s washout was a testament of how the weather has controlled this market in 2017 and is a major factor to where we go next. In the overnight electronic session the September Natural Gas is currently trading at 2.789, which is a ½ of a cent lower. The trading range has been 2.835 to 2.788.
Have a Great Trading Day!