Rains make grains and floods alike, and the wacky weather we experienced this weekend was no different, with more than ½ of the state of West Virginia in a state of emergency with terrible floods, while areas in the Midwest and Plains did not get the rains needed to quench crops' thirst in farmland.
The Grain Complex showed that in the overnight electronic session, with soybeans leading the way, trading 20 cents higher. On the corn front, the July corn is currently trading at 388 ¼, which is 3 ¾ cents higher. The trading range has been 392 to 383 so far.
This is a weather market no doubt, but exports and trade-purposes investors and farmers will be watching events and drama unravel in the Eurozone.
On the ethanol front we had rollover participation Sunday night, with the July contract currently trading at 1.589, which is .006 of a cent lower. The high-low was 1.590 to 1.589 while the August contract posted a trade at 1.600, which is .21 cents higher, and the September contract posted a trade at 1.574, which is 1 ½ of a cent higher.
Investors are positioning for rollovers as the July contract closes in on expiration.
On the crude oil front the market is trading lower, with the U.S. dollar trading higher and continued weakness in the stock market. The dollar strength should continue and be a pall on higher crude oil prices.
With the euro currency and British pound continuing to spiral downward and interest rates at zero, you can expect the printing of more British pounds.
In the overnight electronic session the August crude oil is currently trading at 4684, which is 80 points lower. The trading range is 4796 to 4681 in the early going, and you'll most likely see a newer low shortly.
On the natural gas front the July contract expires tomorrow, so we roll to the August contract which is currently trading at 2.704, which is 1 cent higher. The trading range has been 2.744 to 2.667.
The heat domes around the country and the retirement of coal plants with stocks on hand well below the five-year average will produce shortages in the winter months, if not the dog days of summer in July and August.