Good Morning!
With early yield-counts showing reductions from the last 3 growing seasons and we are seeing an early jumpstart in demand on global concerns with South America and Western Europe’s crops. The Grains still seem to be in stand-down from any rally ahead of Friday’s USDA Crop Production USDA Supply/Demand report. A Reuters poll of 23 analysts report their forecast that range (in billions of bushels) Production 15.146 to 14.580 and yields from 175.0 to 168.6. In the overnight electronic trading session the September corn is currently trading at 322 ½, which is ¼ of a cent higher. The trading range has been 324 ¾ to 321 ¼.
On the ethanol front there were no trades posted in the overnight electronic session. The September contract settled at 1.422 and is currently showing 2 bids @ 1.406 and 1 offer @ 1.429.
On the crude oil front last night’s weekly API Energy Stocks had a bearish spin with crude inventories rising 2.09 million barrels and Cushing, Oklahoma inventories rising 1.25 million barrels. The gasoline stocks showed a draws of 3.95 million barrels and distillates had draws of 1.56 million. The draws in product supported crude prices from having a bigger selloff. With no major economic reports to be released today we will wait and see what the EIA Energy Stocks has to say at 9:30 C.S.T. In the overnight electronic session the September crude oil is currently trading at 4262, which is 15 points lower. The trading range has been 4280 to 4208 in the early going.
On the natural gas front the market is seeking new highs as the new heat dome approaches and we have the EIA gas storage report tomorrow where I expect draws in the injection number and I will supply analyst poll of injection numbers later. In the overnight electronic session the September contract is currently trading at 2.640, which is 2.5 cents higher. The trading range has been 2.643 to 2.612 so far. We could see a bullish run after recent lower lackluster trading sessions.
Have a Great Trading Day!