Active Hurricane Season
The grains are trading easier this morning on light volume and the recent spike in soybeans prices lead to farmer selling.
And any rally in grains will invite farmer selling. In the overnight electronic session the September corn is currently trading at 326 ¼ which is 2 ¼ cents lower. The trading range has been 328 ½ to 325 ½.
The Crop Tour in Indiana is showing possibilities of better yields than previously thought while the Tour in Nebraska the thoughts are hot and dry conditions have taken a toll on the crop in the Cornhusker state.
On the Ethanol front there were no trades posted in the overnight electronic session. The September contract is settled at 1.467 and is currently posting 5 bids @ 1.463 and 2 offers @ 1.492.
The market looks grossly overbid but the upcoming OPEC meeting and the buzz on corn yields may be an enabler to higher Ethanol prices.
On the crude oil front the API data build of 4.5 million barrels trumped the bullish optimism of Iran attending the September OPEC meeting which an agreement to a production freeze is insight but the huge builds took the winds out of the bull’s sails.
In the overnight electronic session the October crude oil is currently trading at 4712 which is 98 points lower. The trading range has been 4774 to 4705. We will be waiting for the EIA Energy Stocks this morning.
On the Natural Gas all eyes are on the hurricane activity in the Atlantic. Tropical Storm Fiona weakened to a depression and could dissipate in the next couple of days. Tropical Gaston is expected to gain Hurricane strength with sustained winds at 60 knots.
The current location is 14.9N 38.6W moving west-northwest. The other storm Disturbance 1 that could form into a hurricane moving west-northwest at about 15 mph across the north Leeward Islands near Puerto Rico, Hispaniola and the Bahamas which could wreak havoc in the Gulf of Mexico and cause more flooding in Louisiana where the Henry Hub is located and could disrupt the flow of Natural Gas.
In the overnight electronic session the September contract is currently trading at 2.776 which is 1 ½ cent higher. The trading range has been 2.786 to 2.749.