Good Morning!
In the overnight electronic session the Grains saw long liquidations. On the Corn front, news that President Trump’s Environmental Protection Agency (EPA) Administrator Scott Pruitt proposed reducing the volume of biofuels in 2018 due to market realities. This story broke after the word on the street was anticipated that the volume figures would stay the same in 2018. With record yields in question any rally is met with stiff seller resistance. The September Corn is currently trading at 386, which 6 cents lower. The trading range has been 390 ½ to 382. Today’s reports are Initial Jobless Claims and U.S. Trade Balance at 7:30 A.M., ISM Non-Manufacturing Index at 9:00A.M., EIA Energy Stocks at 10:00 A.M., Dairy Products and Dairy Products Sales at 2:00 P.M.
On the Ethanol front the July contract goes off the board today. The August contract settled at 1.516 and is currently showing 1 bid @ 1.487 and 5 offers @ 1.525 with Open Interest at 2,471. The market reaction today should be interesting with news from the EPA and Corn going in a different direction than Crude and Gasoline.
On the Crude Oil front last night’s API data cast doubt on past reports findings and the Russian oil companies boosting production from a reliable source to the news outlet that put the story on the wires. It seems to me if the source is so reliable, what is his or hers identity? It seems to me this is inconsistent what the Russian’s were saying all along. I also believe the decision maker on such a move would be Vladimir Putin and the Oil Ministers and not the Oil companies. In the overnight electronic session the August Crude Oil is currently at 4581 which 68 points higher. The trading range has been 4592 to 4520. Today’s EIA report, if bullish should rekindle the bulls and make up for yesterday’s story that sent traders baling for the exits only to bottom and rally big after yesterday API Inventories.
On the Natural Gas front there was a change in the weather forecast that moderated the hot temperatures broke this market as well. From the new 7-Day forecast I still believe it is hot enough to use air-conditioning. In the overnight the August Natural Gas is currently trading at 2.890, which is 5 cents higher. The trading range has been 2.892 to 2.849.
Have a Great Trading Day