Tomorrow July Grain futures expire so do not wait until the last minute to rollover or liquidate positions. Tuesday’s monthly report was not quite the surprise I was looking for but seasoned investors took it as no shock in the data what so ever. The complex did in fact rally after all the global data due mostly to weather concerns as we move closer to harvest pressure and investors came to the realization not to fool Mother Nature and we will trade weather as yesterday is in the rear view mirror and concerns of maintaining Grain quality as drying concerns will help reap yields. In the overnight electronic session the September Corn is currently trading at 358, which is 5 ¾ cents higher. The trading range has been 359 ¼ to 352.
On the Ethanol front there were no trades posted in the overnight electronic session. The August contract settled at 1.591 and is currently showing 2 bids @ 1.603 and 2 offers @ 1.608 the current bid & offer in the market is showing the threat of higher prices in Corn and Energies, which have a direct correlation to where these prices move.
On the Crude Oil front last night’s API data showed a build of 2.2 million barrels, which brought profit taking to the table after yesterday’s big turnaround Tuesday rally before the number’s release. As long as the Stock Market does not crash and the U.S. dollar levitates and does not ridiculously rally with fears of the destabilization of the Euro-currency this market will continue to build in strength. As the fundamentals of the Middle-east are ancient history in their capability of controlling global prices. In the overnight electronic session the August Crude Oil is currently trading at 4629 which is 51 points lower. The trading range has been 4659 to 4607. I see this market ready to breakout above $50 or below $44 dollars and I see above $50 closer to reality unless global demand shrinks due to a global economic crisis.
On the Natural Gas front this market is trading hot humid weather and supplies well below the five-year average. With rig-counts dwindling to historic lows coupled with more shutdowns of nuclear power plants this squirrel (EIA) will not have enough acorns to power the grid through a cold winter. Just like Brexit, think of the consequences of your actions or lack of action. Tomorrow's EIA Gas storage will show injection numbers decreasing as supplies will not meet demand expectations and will create a historic rally. In the overnight electronic session the August Natural Gas is currently trading at 2.784, which is 5 cents higher. The trading range has been 2.789 to 2.727. This market is poised to roll.