Bank of England Leave Interest Rates Unchanged
In a surprise move the Bank of England left Interest Rates in check and did not cut rates what was widely speculated and the markets had a knee-jerk reaction initially but once the smoke cleared the markets continued to trend. Should we be surprised a Central Bank did the exact opposite of what they said they would?
On the corn front the Grain weather rally continues. In the overnight electronic session the September Corn is currently trading at 371, which is 9 cents higher. The trading range has been 372 ¾ to 371. A cooler front is expected by tomorrow but not much relief with dry weather and another extremely hot heat dome to follow, which the market is pricing in right now.
On the Ethanol front the only trade was made in the September contract at 1.570, which is .008 of a cent lower. The spot August contract settled at 1.594 and is currently showing 2 bids @ 1.576 and 1 offer @ 1.608. This market is a little late following the rally in Corn, Crude Oil and Gasoline prices in the futures market.
On the Crude Oil front the 4450 support held in the August contract in yesterday’s trading session. In the overnight electronic session the August contract is currently trading at 4562, which is 87 points higher. The trading range has been 4576 to 4495. The market may want to test $50 again.
On the Natural Gas front we have the weekly EIA Gas Storage data at 9:30 A.M. The Thomson Reuters poll of 20 analysts showed injection estimates ranging from 43 bcf to 66 bcf. This compares to 39 bcf last week, 95 bcf the same week last year and the five year average of 77 bcf. If the weather forecast is correct this will be a further drain on stocks on hand. Remember the retirement of coal plants and nuclear power plants could lead to record shortages this winter. In the overnight electronic session the August contact is currently trading at 2.757 which is 2 cents higher. The trading range has been 2.769 to 2.726.