With the mostly mixed yields in the corn growing areas which point mainly to lower yields investors and some farmers believe overall we will have adequate yields to meet the demand. With an early colder winter forecasted, it could be an interesting harvesting season as well. The Grain complex is taking it on the chin in the overnight electronic session. The September Corn is currently trading at 329 ½, which is 3 ¾ cents lower. The trading range has been 333 to 328 ¾.
On the Ethanol front there were no trades posted in the overnight electronic session. The September contract settled at 1.478 and is currently posting 1 bid @ 1.461 and 1 offer @ 1.488. The market really seems directionless in this shoulder season.
On the Crude Oil front it seems every time we get close to $50 a barrel an event seems to give the market a reason to retreat. This time the September contract expired and the Hawkish FED talking about raising interest rates and the US dollar gaining strength as we head into the meeting on Friday at Jackson Hole, Wyoming. If we could just have the FED presidents stop yacking, which is only creating a counter balance to a smooth and efficient market. In the overnight electronic session the October, Crude Oil is currently trading at 4713, which is 28 points lower. The trading range has been 4746 to 4713. Remember we have the weekly API Energy Stocks at 3:30 P.M.
On the Natural Gas front the market seems to be taking notice we are going to have a nasty cold winter and no coal plants to back up Natural Gas supplies to keep our homes heated. In the overnight electronic session the September contract is currently trading at 2.714, which is 3 ½ cents higher. The trading range has been 2.740 to 2.652. This market next technical level to shoot foe is the 2.800 level.