Finally more seasonable weather but including more unwanted rain. We have several reports kicking off the month with Initial Jobless Claims at 7:30 A.M. Construction Spending and ISM Manufacturing Index at 9:00 A.M. EIA Gas Storage at 9:30 A.M followed with EIA Energy Stocks at 10:00 A.M. and at 2:00 P.M. we have Cotton System, Dairy Product Sales, Fats & Oils and Grain Crushings.
On the corn front the American Farm Bureau Federation released a graph of current crop condition of the U.S. crop. Which included poor and very poor fields. The 14.5 million acres of disappointing and late planted acres suggest 16% of 2017 crop will have reduced yields according to the AFBF. In the overnight electronic session the July Corn is currently trading at 373 which is 1 cent higher. The trading range has been 373 ¾ to 371. Eventually the report from the American Farm Bureau Federation (AFBF) have numbers add up in this way oversold market.
On the ethanol front we had activity in the overnight electronic session with the July contract currently trading at 1.562 which is .014 cent higher with estimated volume of 8 contracts and Open Interest at 1,464 contracts. The current bid/offer is 1 contract bid at 1.558 and 2 offer at 1.562. Even the August contract got in the action posting a trade at 1.550 which is .003 of a cent higher. The current market is 1 bid at 1.546 and 3 offers at 1.557 with Open Interest at 605 contracts.
On the crude oil front the APIU data showed draws of 8.7 million barrels and the market is still treading water at the moment. Myra P. Saefong reporter from CBS Marketwatch quoted Rystad Energy seeing a dramatic bounce in U.S. production rising as fast as it dropped. That is a flamboyant assumption given Energy companies are paying banks back loans when the market was supposed to be $60 to $70 a barrel. In the overnight electronic session the July Crude Oil is currently trading at 4854 which is 22 points higher. The trading range has been 4907 to 4831.
On the natural gas front the market is trading higher with more seasonable weather approaching and further talks of coal plants demise. Exports and Hot weather will pressure the power grid and drive this market higher. In the overnight electronic session the July contract is currently trading at 3.111 which is 4 cents higher. The trading range has been 3.128 to 3.076. Today we have the weekly EIA Gas Storage data and the Thomson Reuters poll of 23 analysts participating expect injection builds anywhere from 73 bcf to 86 bcf with the medium of 78 bcf. That would be the smallest injection number since 2012 and compares to the 1 week of 75 bcf the 1-year of 80 bcf and the 5-year average of 97 bcf. If we get hot weather… Katy Bar the Door!