Good Morning!
We jumpstart this Monday morning with Chicago Purchasing Managers Index (PMI) at 9:00 A.M., Export Inspections at 10:00 A.M. and Crop Progress at 3:00 P.M. The market is showing what is cheap can be cheaper and the evidence in this market is showing those colors. In the overnight electronic session the September Corn is currently trading at 369, which is 5 ¼ cents lower. The trading range has been 371 to 367 ½.
On the Ethanol Front the market is playing follow the leader with Corn and Crude-Oil prices. There were no trades posted in this market, which the September contract settled at 1.541 and is currently showing 1 bid @ 1.542 and 1 offer @ 1.559 with growing Open Interest at 973 contracts.
On the Crude Oil front the market is finally coming to grips with reality. (I wonder out loud when Hollywood will). This is a textbook plat that the market is out of balance and will eventually get some legs under it with cheap prices and demand something will give. In the overnight electronic session the September Crude Oil is currently trading at 4950, which is 21 points lower. The trading range has been 5006 to 4935. This market is set for a break out to the upside.
On the Natural Gas front the weather has dampened demand of this market as it continues to retreat this morning. In the overnight electronic session the September contract is currently trading at 2.845, which is .096 cents lower. The trading range has been 2.900 to 2.834. With an uncharacteristic weather pattern dating back to January and February – and now almost August, the weather is not making this a demand-driven market.