Good Morning!
We kickoff the day with CPI and Real Earnings at 7:30 A.M. followed later with the API Energy Stocks. On the Corn front "stunned" is the only word I can say to explain yesterday's report with the USDA claiming late plantings saved the day. Farmers enrolled 85.871 mln acres of Corn in the U.S. subsidy program including failed acres for 2019 as of August 1. Prevented Plantings of 11.211 mln acres of Corn as of August 1st. With what the naked eye saw in the fields overall these numbers are astounding and the Corn market waisted little time locking limit down in yesterday’s Open Out-Cry session. Even though the charts have been violated a lot a investors do not believe this report and weather could have a way of this market seeking it’s own level to fair value. In the overnight electronic session the December Corn is currently trading at 379 ½, which is 13 ¼ cents lower. The trading range has been 388 to 379 ¼. We should see if this data sinks in and sink the market further or will weather become the reality as we close into harvest season.
On the Ethanol front the September contract is currently trading at 1.395, which is .031 lower. The trading range has been 1.305 to 1.291. The markets is currently showing 1 bid @ 1.292 and 1 offer @ 1.302 with 12 contracts traded and Open Interest at 578 contracts.
On the Crude Oil front the market was trading higher in the overnight electronic session only to selloff as Goldman Sachs (NYSE:GS) stirs the pot with the "R" word (recession). It has yet to come to roost and let’s not forget Goldman’s accuracy in their predictions and why investors continue to listen to what they say. There are also whispers that Great Britain is dealing quietly with Iran to get their Oil tanker back, which may take geo-political risk temporarily out of the market. I am expecting we should see draws in the API data later this afternoon. The September Crude Oil is currently trading at 5444, which is 49 points lower. The trading range has been 5530 o 5421.
On the Natural Gas front we are showing signs of life even though it is barely breathing as we head into shoulder season. In the overnight electronic session the September contract is currently trading at 2.125, which is 2 cents higher. The trading range has been 2.129 to 2.086.
Have a Great Trading Day!