As investors prepare for more testimony to Congress from Janet Yellen and the Brexit vote tomorrow pressured crude oil to close lower on the day at yesterday’s 1:30 close. A bullish API inventory number has the market trading above $50 a barrel. In the overnight electronic session the August crude oil is currently trading at 5010 which is 25 points higher. The trading range has been 5054 to 4986. This morning we will have the EIA Energy Stocks at 9:30 A.M. Other reports will be Existing Home Sales at 9:00 A.M. and Dairy Product Sales at 2:00 P.M.
On the corn front the market seems to have finally found some support as the weather market continues to trade on rains that are needed in many growing areas and the forecast of heavy rains dampened the bulls stranglehold on the market and released the bears. Violent storms forecasted today and tonight that could produce hail and tornadoes could inflict damage on the crops and could weigh on traders’ minds of being too heavily short or long and before the damage is priced in we could see a sideways chop. In the overnight electronic session the July corn is currently trading at 397 ¾ which is 1 ½ of a cent higher. The trading range has been 401 to 395.
On the ethanol front the July contract is currently trading at 1.565 which is .008 of a cent lower in the overnight electronic session. The trading range has been 1.572 to 1.565 so far. The market is currently showing 2 bids at 1.566 and 1 offer at 1.579.
On the natural gas front the market is taking a breather trading a little easier which should create another buying opportunity. Tomorrow's EIA Energy Stocks should send more bullish signals ahead and keep this train rolling. In the overnight electronic session the July contract is currently trading at 2.733 which is 3 ½ cents lower. The trading range has been 2.771 to 2.724 in the early going. I am anticipating the cooler temperature weather forecasts were over-rated and we could see this market reverse course and trade higher in today’s trading session.