On the corn market, USDA Crop Production gave corn a boost of 3% to 72% good-to-excellent rating, from last week's 69%, and 82% of the nation’s corn silking versus a 75% five-year average. Hoosier Ag Today reported the recent rains brought needed relief to corn and soybeans, with increasing topsoil and subsoil moisture significantly from last week. Ohio’s Country Journal-Ohio Ag Net reports rain haves and have-nots showing up in their state. This brought an easing of prices in the overnight electronic session. We are now currently trading at 331 which is 3 ½ cents lower. The trading range has been 332 ½ to 330 ½.
In ethanol, many members of Congress from both sides of the aisles are pushing for inclusion of emergency relief aid for ethanol producers in the COVID-19 stimulus bill that is currently working its way through the Senate. Lawmakers are aware that they already provided support and the USDA distributed billions in financial aid to other segments in the agriculture sector. Producers from the pork and beef industries, as well as cotton, wheat, asparagus, cilantro and rhubarb have received help, but the ethanol producers have been left out. This damage has come after the feud with the oil industry regarding blending requirements. Let's hope politicians can brush aside politics and pork barreling and get relief to those who need it. There were no trades posted in the overnight session. September ethanol settled at 1.115 and the market is currently showing 3 bids @ 1.030 and 1 offer @ 1.160 with Open Interest at 65 contracts.
Crude oil has been trading from the positive to the negative in the overnight electronic session. Today’s API Energy Stocks may or may-not include disruptions in production from Hurricane Hanna, but traders are aware there could be a shock number. We are also watching Disturbance 1 in the Atlantic that is now about 500 miles east of the Winward Islands, producing a wide area of showers and thunderstorms.
Recent satellite imagery suggest the system does not yet have a well defined center, but data from NOAA buoy 41040 indicate the system is producing winds near tropical-storm-force. An Air Force Reserve Hurricane Hunter aircraft is scheduled to investigate later this afternoon. If the storm becomes a Tropical Wave, the name will be Isaias. Based on its current track, it is headed towards the East Coast or possibly the Gulf of Mexico. This has been the ninth Disturbance in the Atlantic so early in hurricane season. September Crude Oil is currently trading at 4143 which is 17 points lower. The trading range has been 4193 to 4126.
Robert P. Balan, Managing Director and CEO of Predictive Analytic Models, wrote in Seeking Alpha that natural gas is set to rally until February, citing severe cuts in production due to the COVID-19 pandemic. The sharp decline in supplies is swamping the delta of falling demand. He continued that natural gas, the “widow maker,” may begin a new cycle where the upside has begun. September natural gas is currently trading at 1.844 which is .058 higher and seeking new highs as I write. The trading range has been 1.844 to 1.777.