Storms Lived Up to the Billing
The storms more than lived up to expectations with a light show of lightning, heavy rains, wind, hail, floods and tornados. We will be assessing the crop damage in the coming days. In the overnight electronic session the July corn is currently trading at 390 ¼ which is 2 ¾ cents lower. The trading range has been 392 ¾ 388 ¾ so far. The complex is trading a little weak in the early going.
On the ethanol front there were no trades posted in the overnight electronic session. The July contract settled at 1.584 and is currently showing 2 bids @ 1.570 and 1 offer @ 1.599.
On the crude oil front the Fed-Congress chatter coupled with the Brexit fears sold off the market even though the EIA inventory data versus the API data the number was still bullish. I still believe this last break in the market was just another bump in the road in choppy volatile trade.
In the overnight electronic session the August crude oil is currently trading at 4990 which is 77 points higher. The trading range has been 4999 to 4908. I will not be putting myself on a limb saying we will punch through $50 a barrel if we have not already before this letter goes to print.
On the natural gas front normal temperatures versus the heat dome initially forecasted in the Mid-West took the wind out of the sails somewhat in this rally. This morning at 9:30 A.M. we have the weekly EIA Gas Storage data. The Reuters poll of 19 participants of analysts across the country shows injection estimates ranging from 47 bcf to 59 bcf.
This compares to last year’s injection of 73 bcf for the same week and the five-year average of 78 bcf for the same week. More news that Southern California Gas (SOCALGAS) is keeping gas flowing passing the first summer test. But with wildfires out of control and rolling blackouts still a very high probability they are far from out of the woods.
Contributing the statistics and California situation Scott Disavino, Thomson Reuters. In the overnight electronic session the July natural gas is currently trading at 2.667 which is 1 cent lower. The trading range has been 2.692 to 2.645.