Start of an Active Hurricane Season
After Tropical Storm Bonnie we have Tropical Storm Colin following in her foot steps in the Gulf of Mexico currently on course threatening the west coast of Florida and could move inland and out to the Atlantic threatening the Carolinas. If this La Nina weather patterns stick we will have the most active hurricane season since 2012. Also over the weekend we had a train derailment in Oregon that load it was carrying was… You guessed right if you said oil. The current administration should have embraced the Canadian Pipeline as it would have created jobs and is the safest way to transport oil and natural gas. The U.S. would have been a hub in importing and exporting oil. And the legacy of this president will be the shutting down of coal plants and the worst growth president trumping Herbert Hoover during the Great Depression.
On the corn front we are currently trading on the highs in the entire Grain complex with the July corn currently trading at 426 which is 7 ¾ cents higher. We may make new highs before this report goes to print. The current trading range has been 426 to 419 ¼. The South American crop and speculation of how severe La Nina will be are heavy factors weighing in this market and complex.
On the ethanol front the July contract posted a trade at 1.673 which is .004 of a cent higher in the overnight electronic session. The market is currently showing 2 bids at 1.675 and 2 offers at 1.692.
On the crude oil front the flooding last week in Houston, the train derailment in Oregon and Tropical Storm Colin should slow the flow of oil and continue feeding more bullish news that will make us pay more at the gas pump. The BP (LON:BP) refinery in Whiting, Indiana is foregoing Union employees and looking for independents to come in from all over the country to work for a cheaper wage. This goes to show OPEC, non-OPEC and the oil industry is in the abyss and if demand continues at a record pace with China and India importing as much oil as possible and producing nations such as Iraq, Libya, Nigeria and Venezuela having output disruptions due to political upheaval this complex should soar. In the overnight electronic session the July contract is currently trading at 4917 which is 55 points higher and is looking strong and could have a higher high that I have printed this morning. The trading range has been 4927 to 4871. We should flirt with $50 a barrel before Monday’s trading session ends.
On the natural gas front we are trading higher again. Hot weather, coal plants going by the wayside, rig counts spiraling downward and farm vehicles, cars and trucks running on Liquefied Natural Gas and a hot summer is just a recipe for a bull market. In the overnight electronic session the July contract is currently trading at 2.428 which is 3 cents higher. The trading range has been 2.480 to 2.414.