On the corn front, the bulls are back in town. The basket of commodities that make the economy roll energy, financials, and grains dominated back in the green. Word of China’sChina’s $200 billion stimulus attracted new buying. Ukraine will not accept any Russian deal to reopen Black Sea exports was bullish along with talk of dry weather in west EU could lower corn crop to 62 mmt vs. the USDA 68 mmt, also favored in. The September corn is currently trading at 614, which is 5 cents higher. The trading range has been 620 to 609.
On the ethanol front, the EIA said ethanol production was down for the third week in a row, averaging 1.044 million barrels a day, a decrease of 7,000 barrels from a week ago and 23,000 from a year ago. Ethanol stocks hit a four-week high at 23.49 million barrels, growing 7,000 on the week and 23.41 million from a year ago. The USDA said the US exported 147.06 million gallons of ethanol and 966,108 metric tons of distillers grains in May. Ethanol futures are still dead in the water.
On the crude oil front, the administration’s war on oil and truckers is making matters worse, as one can imagine. Supply chains running at a snail’s pace with empty store shelves is not gonna cut it with the American People. The solution to getting started to take us out of the abyss is right below us. Open up Anwar, The Keystone Pipeline, and the Permian Basin. I would embrace such a move, and we could put a dent in Unemployment, and I am not expecting a good number on today’s report. The August crude oil is currently trading at 10257, which is 16 points lower. The trading range has been 10377 to 10151.
On the natural gas front, an energy transfer natural gas pipeline exploded on Thursday, setting off a two-hour in a rural area on the west edge of Houston. The blaze was extinguished at about 12:10 PM, according to the Texas Railroad Commission, which regulates oil and natural gas drilling and energy pipelines in the state. No injuries were reported. This proves the point that pipelines are safer than rails. It is about safety and many other advantages pipelines create. With record heat in the south, I am surprised we are not trading higher. We should see some pressure on the power grid, and it will be brought to the test. In the overnight electronic session, the August natural gas is currently trading at 6.208, which is 0.089 lower. The trading range has been 6.276 to 6.101.