Janet Yellen’s Semi-Annual Testimony to Congress Today and Tomorrow
Today and tomorrow Janet Yellen will give her semi-annual testimony and on Thursday we have the Brexit vote. Arrgh! What else can you throw at a market that is destined to trade with follow through and very excellent bid offers and now investors are nervous once again. I only wish these politicians in Congress could pipe down and let the market seek its own level. These events will keep investors on their toes and trade on fear and greed which could make for a volatile week.
On the corn front this market is trading weather and the many different forecast on the heat. As far as the rains some areas are getting soaked in moisture which is good while other areas are dry to the bone and are thirsty for rain. Thunderstorms with hail and possibilities of tornados touching down could cause crop damage. In the overnight electronic session the July corn is currently trading at 419 ¼ which is 2 cents lower. The trading range has been 422 ¼ to 418 so far. The market is pretty close to support levels.
On the ethanol front the August contract posted a trade at 1.625 which is .002 of a cent lower. The July contract settled at 1.640 and is currently showing 3 bids at 1.628 and 3 offers at 1.636.
On the crude oil front we have the weekly American Petroleum Institute (API) data to be released at 3:30 P.M. and depending on what Janet speaks today should have a bullish spin with the disruptions we have seen the past few weeks. In the overnight electronic session the August contract is currently trading at 4917 which is 79 points lower. The trading range has been 4996 to 4916 and is looking heavy before this report goes to print. I still remain bullish this market barring any surprise from Janet and the Brexit vote which will leave financial and commodity investors scrambling in the initial shockwave.
On the natural gas front the market really showed some legs and the reality of a hot summer with retired coal plants not be able to keep the power running for storage in winter during peak demand and prices should boomerang to levels we have not seen in some time. Do to the heat and fires in California there are talks of rolling blackouts in that inferno region do to an Act of God. Venezuela is blackout period and cannot export reserves do to many years of corruption in the socialist government of Hugo Chavez. And now their people are suffering. In the overnight electronic session the July contract is currently trading at 2.727 which is 2 cents lower. The trading range has been 2.750 to 2.710. I remain wildly bullish on this market as we are way past storage lows of the 5-year average. And if we have a cold winter and no coal plants to make up the difference in power to get the gas out of the ground the weak infrastructure in the grid will be brought to bear these shortages.