Colin Hits Land after Brewing in the Gulf
Florida and Georgia braced for Colin to pack his punch and he did make them wait but did not let them down as forecasters predicted and as expected he is traveling up the east coast with movement: northeast at 27 knots or 31 mph and could still pose a problem if it slides out in the Atlantic. Today we also should have an interesting weekly API number at 3:30 P.M. today which I expect draws. Also at 2:00 P.M. we have Consumer Credit.
On the corn front the market could not quite punch through resistance at 428 ¼ in yesterday’s session but did settle strong. More rains and cooler temperatures are forecasted and the farmers desperately need rain before the heat domes hit. In the overnight electronic session the July Corn is currently trading at 425 ¼ which is 2 cents lower. The trading range has been 428 to 423 ¾ so far. The market looks to be taking a breather with partial profit taking before the next upside move.
On the Ethanol front there were no trades posted after yesterday’s climb. The July contract settled at 1.706 and in the overnight electronic session the market is currently showing 2 bids at 1.691 and 2 offers at 1.700.
On the crude oil front the market punched through $50 and we could test $60 a barrel as we draw closer to the busiest driving period of the summer the 4th of July weekend. Now that Janet Yellen has hinted no rate hike at this FED meeting due to the anemic jobs number last Friday. In the overnight electronic session the July crude oil is currently trading at 5029 which is 60 cents higher. The trading range has been 5037 to 4944 in the early going.
On the Natural Gas front the market is easing a little bit before the heat domes are scheduled to hit. In the overnight electronic session the July contract is currently trading at 2.441 which is 2 ½ cents lower. The trading range 2.451 to 2.425. I do expect this market to gather it’s legs as well towards the ladder part of the week if not sooner.