More Rains Expected
Good Morning!
This week we will see cooler temperatures and more rain. Wednesday is pegged to be hot and dry while the rest of the week will milder temperatures and rain. In the overnight electronic session the July Corn is currently trading at 380 ¼, which 3 ¾ cents lower. The trading range has been 380 ¾ to 375 ¼. The Corn market is lagging behind the rest of the Grain markets that are trading in a flurry. This could be a sign of a summertime Grain market after all.
On the Ethanol front the July contract is currently trading at 1.570, which is 1 tic lower. The trading range has been 1.570 to 1.567 with Open Interest at 727 contracts. Now we move to rollovers with the August contract has 955 in Open Interest surpassing the July contract as it closes in on expiration. The August contract posted a trade at 1.575, which is unchanged.
On the Crude Oil front the July contract expires tomorrow so think August and roll your July contracts today. In the overnight electronic session the August contract is currently trading at 4505, which is 8 points higher. The trading range has been 4528 to 4468. This market is oversold and no in balance and we will pay the price at the pump when frackers and independents go out of business with the market at least $15.00 out of balance to create any revenue.
On the Natural Gas front cooler temperatures forecasted had the bears knocking on the door. While talking weather forecasts we have been told of a busier than usual hurricane season and there is a tropical storm headed to the Gulf of Mexico, which could spiral prices to the upside. The market is currently folding in their tents with the July contract currently trading at 2.897 which is 14 cents lower. The trading range has been 2.971 to 2.884. After we weather the storm we should have higher temperatures and we surmise damage control in refinery row in the Hoston Shipping Channel.
Have a Great Trading Day