More Selling Pressure?
New contract lows and with yield reports from different corn growing regions that tell a different story cannot spark any type of a cohesive rally. Now edging closer to Labor Day and Harvest Season weather will be a premium to this market.
The market has digested a lot of selling pressure and talk of an early frost could send this market in a bullish frenzy and the smart shorts in this market are not pressing the accelerator further at this time of the season and at these price levels. In the overnight electronic session the September Corn is currently trading at 347 ½ which is 1 ½ of a cent higher. The trading range has been 347 ¾ to 345 ¾.
On the ethanol front the October contract is currently trading at 1.494 which is .001 of a cent lower. The trading range has been 1.506 to 1.494 with 5 contracts traded and Open Interest at 810 contracts.
On the crude oil front yesterday’s weekly API Energy Stocks data was bullish for crude oil but a little bearish to products. This morning we will have the EIA Energy Stocks which we are hearing whisper numbers are talking more bullish picture. Light volume and algorithms can’t keep this market below $50 a barrel for ever. When the bottle top pops, look out for the rally. In the overnight electronic session the October crude oil is currently trading at 4769 which is 14 points lower. The trading range has been 4778 to 4753.
On the natural gas front the market is still trading on oversupply and weather that has not pressured the power grid this year. In the overnight electronic session the September contract is currently trading at 2.919 which is 2 cents lower. The trading range has been 2.957 to 2.901.