Just when you thought it was safe to go back in the water memories of another country thinking of leaving the EU like shades of Greece last year and the economic impact the global economy worried about forcing investors to head for the exits or maneuver with flight to quality as fears kick in. The FED meets today and tomorrow and their decision on raising Interest Rates in environment would not set well with investors. Today’s reports are Business Inventories and Retail Sales at 7:30 A.M. and the weekly API Energy Stocks at 3:30 P.M. The market seems to be overdoing the fear factor even before the initial shock of Britain leaving the EU it will be at least a couple years to completely sever ties.
On the corn front the Grain complex is trading like it is bracing for a global economic slowdown as well. People need to eat and this market is showing a buying opportunity as well with chicken little the sky is falling. In the overnight electronic session the July Corn is currently trading at 426 ¼ which is 3 ¾ cents lower. The trading range has been 429 3/ to 423 ½ so far. The fundamentals are still in place for a bull market even with fresh memories of Greece leaving the EU and tormented investors wondered why they worried at all.
On the Ethanol front the July contract is currently trading at 1.685 which is 1 cent lower. The trading range has been 1.699 to 1.685 while the August futures are last at 1.668 which is 1 cent lower as well. The treading range has been 1.674 to 1.668. This market is following trade in the Energies and Grains trying to price in a global slowdown.
On the crude oil the market is trading like it has a pall over it as well with fears the global economy is bracing for another slowdown. I do believe when the smoke clears investors will realize they overreacted to the doom and gloom headlines. In the overnight electronic session the July crude oil is currently trading at 4813 which is 75 points lower. The trading range has been 4859 to 4802. I still expect this market to test $60 soon after the Brexit drama is a thing of the past.
On the Natural Gas front the Brexit maneuvers stopped this bull market in its tracks as well. As soon as the Brexit fears become a non-event this fundamentally bullish market will take flight. In the overnight electronic session the July Natural Gas is currently trading at 2.535 which is 5 cents lower. The trading range has been 2.592 to 2.535. After tomorrows FED decision on Interest Rates the Brexit vote Thursday June 23rd should be the only other bump in the road.