Good Morning!
This morning we have a lot on our plate with Export Sales, Initial Jobless Claims at 7:30 Factory Orders at 9:00 EIA Gas Storage at 9:30 and Dairy Products at 2:00 P.M. And tomorrow we have the monthly Unemployment and U.S. Trade Balance, which these numbers are as fickle as Mother Nature. On the corn front the market is gathering legs in the overnight electronic session as the severe heat intensifies across the lower 48 and certain growing areas are aware that they are not out of the woods concerning yields just yet. The September Corn is currently trading at 325 ¾, which is ¾ of a cent higher. The trading range has been 326 ¾ to 324. With weather forecasts and government reports that will even cook the books, Let the games begin.
On the ethanol front there were no trades posted in the overnight electronic session. The September contract settled at 1.375 and is currently posting 3 bids @ 1.366 and 2 offers @ 1.390.
On the crude oil front the market seems to be hedging the bet of supply or oversupply versus demand or demand destruction with the continued economic slowdown with this current administrations continued government regulation versus Free Enterprise. Government programs outweigh what the individual will produce and the economic impact that the government will never voluntarily reduce itself in size. Once launched it will never disappear. And with the Brexit move affecting purchasers is just another sign of a slowdown in Free Trade as concerns of, do the same regulations apply now that we are no longer in the E.U. We could expect more intervention and or stimulus in this foggy time. In the overnight electronic the September Crude Oil is currently trading at 4076, which is 7 points lower. The trading range has been 4141 to 4043.
On the natural gas front we have the weekly EIA Gas Storage data that could be a game changer in low prices today. The Thomson Reuters poll of 20 analyst show injection ranges anywhere from draws of 6 bcf to builds of 10 bcf. With utilities burning gas to meet cooling demand and with this winter not far behind investors’ concerns will be, “do we have enough storage to meet demand to keep the lights on?” In the overnight electronic session the September Natural Gas is currently trading at 2.849, which is 1 cent higher. The trading range has been 2.857 to 2.828.
Buckle Up Your Chinstrap & Have a Great Trading Day!