Commercial trade fears continue as demand fears weaken as Europe as what type of tariffs or trade barriers have awoken with Britain leaving the European commerce zone. The FED and Global banks are not helping matters in this conundrum that leaves speculators backpedaling keeping investors from rising to the occasion at the worst possible moment as they rose to the occasion in the 2007-2008 global financial crisis. The question we have to ponder is will politicians ever learn? Well that’s an easy answer.
On the corn front Mother Nature is posing a threat once again as we look ahead to crop conditions this late in the maturing season. In the overnight electronic the September Corn is currently trading at 334 ¼, which is 1 ¾ of a cent higher. The trading range has been 334 ½ to 331 ¾ so far. The Grain complex is trading global crop conditions, global weather and global central bank moves. At the end of the day, we will come to the notion of what yields we will realize.
On the ethanol front this market is sitting on its hands as well waiting to follow the Corn movement. In the overnight electronic session there was no trade the August contract settled at 1.458 and is currently showing 1 bid @ 1.427 and 1 offer @ 1.466. Once again this wide spread is showing the cast of doubt in speculators minds.
On the crude oil front the market is eagerly awaiting the EIA Energy Stocks data as the market is testing support and could make a new low unless today’s data is convincing enough to bring buyers back to the table. In the overnight electronic session, the September Crude Oil is currently trading at 4277, which is 15 points lower. The trading range has been 4296 to 4251. This market is digesting what the Global banks and FED are capable of in manipulating this market and what is reality. We are in for a rude awakening.
On the natural gas front the August contract is going off the board today… Liquidate or Roller before it is too late. The market still is doing a balancing act of supply/demand and what Central banks next move is. Weather will also play a heavy hand on where we go next after the smoke clears. N the overnight electronic session the September contract is currently trading at 2.682 which is a ½ of a cent higher. The trading range has been 2.685 to 2.645. I still remain bullish as we have gas storage statistics tomorrow and rig counts on Friday.
Have a Great Trading Day!