Grain Reports Today and Tomorrow
Today we have weekly Export Inspections and Crop Progress. Tomorrow we have Wholesale Trade at 7:300 A.M. followed with Crop Production and USDA Supply/Demand at 11:00 A.M. I did not see anything new in the last few Crop Production data that showed any signs of crop distress that was previously reported by the USDA. I see the crop was late getting in the ground and heard enough of farmer’s complaints of not enough of moisture and lack of rain and forecasted rains where the farmers land was on the map. We are coming to the point of no tomorrow. In the overnight electronic session the September corn is currently trading at 353 ½, which is 3 ¾ cents higher. The trading range has been 354 ¾ to 352 ½. Hot humid weather with rain forecasted could further bring volatility into the fold as we head in tomorrow’s Crop Production USDA Supply/Demand data.
On the Ethanol front there were no trades posted in the overnight electronic session. The August contract settled at 1.588 and is currently showing 1 bid @ 1.581 and 1 offer @ 1.603. The Environmental Protection Agency (EPA) mandate of the Renewable Fuel Standard (RFS) in 2007 is now almost a decade late and plans to require 18.8 billion gallons of bio-fuel blended into America’s fuel. This experiment has been a debacle to motors that run these fuels whether it be cars, boats, motorcycles this weak fuel is murder on engines and also takes food out of the food chain. Anti-hunger advocates, consumer groups and many others support the END of the Ethanol Mandate.
On the Crude Oil front we keep moving from risk on to risk off. Now that we are exporting product the investors that are not caught up in future supply tightness are trading that way. I believe this week could start to change their minds. About swimming in product and for how long. The current administration does not have an energy plan and that was very obvious when the Saudi’s flooded the market. We have sworn enemies such as Iran making policy when the truth of the matter we do not need them. Let’s let them export what they export best. Terrorism. The truth of the matter is if we have a solid energy plan we can put these adversaries on heap pile of history. In the overnight electronic session the August Crude Oil is currently trading at 4516 which is 25 points lower. The trading range has been 4529 to 4453 so far. More stimulus in the Euro-zone could mean a higher U.S. dollar and pressure Crude Oil prices.
On the Natural Gas front the August contract is currently trading at 2.831 which is 3 cents higher. The trading range has been 2.871 to 2.817. I still remain bullish with the heat dome we will experience this week and have air-conditioners working over-time.