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Corn And Ethanol Report: The Heat Is On

Published 06/12/2017, 09:11 AM
Updated 07/09/2023, 06:31 AM
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Export Inspections & Crop Progress

The weather has changed and we can expect to be hot and dry, even if we have some rain creating some moisture, the heat is on. With a bumper crop expected in South America U.S. farmers will sell into any type of rally pressuring the basis. And for now the market has a bearish fundamental tone. Today we have the weekly Export Inspections at 10:00 A.M. and Crop Progress at 3:00 P.M.

In the overnight electronic session the July corn is currently trading at 381 ¾ which is 6 cents lower. The trading range has been 387 ¼ to 381 ½.

On the ethanol front there were no trades posted in the overnight electronic session... The July contract settled at 1.550 and is currently showing 1 bid @ 1.541 and 3 offers @ 1.555 with Open Interest at 1,115 contracts.

On the crude oil front the question is do we have another leg down or has the horse left the barn? The crude il market is finally acting like prices cannot be this cheap to get the market back in balance. In the overnight electronic session the July Crude Oil is currently trading at 4651 which is 68 points higher. The trading range has been 4669 to 4566.

On the natural gas front the market is taking record high or close to record high temperatures for this time of year in stride. We still need a good dose of sweltering weather until the power grid is really put to the test. And how long this heatwave lasts will be the determining factor. In the overnight electronic session the July natural gas is currently trading at 3.059 which is 2 cents higher. The trading range has been 3.073 to 3.010.

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