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Lower Dollar Offers Support To Corn

Published 07/26/2016, 09:14 AM
Updated 07/09/2023, 06:31 AM
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Besides the upcoming Fed meeting, investors will be monitoring Consumer Confidence and New Home Sales at 9:00 A.M.

More earnings expected today as well, with Verizon (NYSE:VZ) already having mixed 2Q results while Caterpillar (NYSE:CAT), United Technologies (NYSE:UTX) and DuPont (NYSE:DD) beat the street's expectations.

On the corn front the market is wavering on weather and yields, even after the past five days of weather we have experienced. Depending on what growing region you look at, Mother Nature had a curveball up her sleeve. Plenty of rain and soil moisture to no rain or barely at all, and other areas hit with damaging hail and high winds.

In the overnight electronic session the September corn is currently trading at 334 ¾, which is sharply unchanged. The trading range has been 335 to 331 ½. The U.S. dollar is trading lower, offering support at this point.

On the ethanol front there were no trades posted in the overnight electronic session. The August contract settled at 1.472 and is currently showing 1 bid at 1.453 and 1 offer at 1.477.

On the crude oil front the market caved through support as product concerns are in the rearview mirror this week. The Fed’s verbiage and the weekly API Energy Stocks may tell a different picture.

In the overnight electronic session the September crude oil is currently trading at 4264, which is 49 points lower. The trading range has been 4339 to 4259. Investors are aware of gas prices going lower for this time of year. It is an election year and the Fed is also speaking shortly, so these factors will keep investors more nimble before they move or pounce.

On the natural gas front the August contract expires tomorrow, so our focus moves to the September contract, weather, rig counts and below average gas storage. In the overnight electronic session the September natural gas is currently trading at 2.682, which is 3 cents lower. The trading range has been 2.740 to 2.666.

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