A Lot of Earnings the Market has to Digest Today
Weather over the weekend had a mixed effect in the Grain Complex with soybeans over 10 cents lower while wheat is trading 4 cents higher and the corn a couple cents higher. The market’s main focus will be weather in the coming weeks and we could soar to new highs or trade lower with summer doldrums and look to trade harvest pressure in the complex. In the overnight electronic session the September corn is currently trading at 353 ½ which is 1 ¼ of a cent higher. The trading range has been 357 ¼ to 350 ¾. The market may see some buying when the heat is on starting tomorrow.
On the ethanol front there were no trades posted in the overnight electronic session. The market seems destined to trade higher as prices in corn and crude oil should rally as the heat intensifies. The August contract settled at 1.558 and is currently showing 1 bid at 1.638 and 1 offer at 1.569 which is quite a spread.
On the crude oil front the Turkish Straits were reopened to commercial vessels after a failed coup in the country. We are trading somewhat directionless as the market absorbs the political backlash from the Middle-East and domestically here in the United States. In the overnight electronic session the August crude oil is currently trading at 4545 which is 50 points lower. The trading range has been 4614 to 4542 so far. IU am anticipating a chop to higher prices in today’s trading session.
On the natural gas front this market is poised for liftoff and here are the four reasons that should trigger the rally. Extended heat dome, continued retirement of coal and Nuclear plants, bullish rig counts and Exports to Mexico. In the overnight electronic session the August contract is currently trading at 2.776 which is 2 cents higher. The trading range has been 2.799 to 2.745.