Wild Energy Fears for Bulls
We start off this Tuesday with Capacity Utilization and Industrial Production at 8:15 A.M. followed with API Energy Stocks at 3:30 P.M. Yesterday’s Corn Export Inspections were lower than what was expected but overall not a bad reading. In the overnight electronic session the September Corn is currently trading at 345 ¾ which is 4 cents higher. The trading range has been 346 ½ to 344 ½. We should see a rally in Grains as selling pressure mounts and the fundamentals do not add up with drought in Europe and a weak South American crop. Weather will be a key factor as we move closer to the harvest season.
On the Ethanol front we are starting to see rollovers and Open Interest climbing in the September contract. The August contract is currently trading at 1.409 which is .004 higher. The trading range has been 1.410 to 1.402. 20 contracts traded and Open Interest is at 922 contracts.
On the Crude Oil front the market is trading nervous after taking a pummeling in yesterday’s action. The market is in chop mode for the moment and we are expecting another large draw in Crude Oil and Product Stocks. In the overnight electronic session the August Crude Oil is currently trading at 6803 which is 3 tics lower. The trading range has been 6842 to 6766.
On the Natural Gas front the August contract is currently trading at 2.779 which is 2 cents higher. The trading range has been 2.788 to 2.758. Nothing has changed fundamentally and I remain bearish.