Busy Day Ahead
Today we start the day with Consumer Confidence at 9:00 A.M., API Energy Stocks at 3:30 P.M and the FOMC Meeting today and tomorrow. On the Corn front the USDA Crop Progress was not exactly glowing with corn good to excellent rating down 2% at 62% with Silkings at 67% up 27%. Traders still seem to be inclined to selling with carryover on hand. In the overnight electronic session the September Corn is currently trading at 373 which is 4 ¼ cents lower. The trading range has been 383 ¾ to 371 ¾. We could still see weather premium built in before harvest pressure applies and this becomes a sellers’ market.
On the ethanol front there were no trades posted in the overnight electronic session. The August contract settled at 1.517 and is currently showing 1 bid at 1.511 and 1 offer at 1.523 with sliding Open Interest at 285 contracts.
On the Crude Oil front the market is flying with several bullish fundamentals driving the market starting with old news that Saudi Arabia and Nigeria announcing to pull back on exports and output to pull the market back in balance. Also in the news Haliburton is pulling back on Shale production which means fewer rigs. Also Anadarko will be putting a lid on Capital Spending after horrible earnings. This fundamental news is tailor made for a rally and if today’s weekly API Energy Stocks show another draw this market should blast off. In the overnight electronic session the September Crude Oil is currently trading at 4714 which is 80 points higher. The trading range has been 4727 to 4638.
On the Natural Gas front the market is wavering on an actual weather market. At these prices you will see producers cutting production and see a decline in rig counts. In the overnight electronic session the August contract is currently trading at 2.939 which is 4 cents higher. The trading range has been 2.945 to 2.899.