Good Morning!
We kickoff the day with the EIA Energy Stocks at 9:30 A.M. and Dairy Product Sales at 2:00 P.M. The FED will make the announcement on Rates at 1:00 P.M. and as the ECB talks more stimulus will the FED follow as the China talks are back on heading into the G20. Traders thought a Rate cut was a given this time around but the given economic horizon versus last week has changed with trade talks set to begin next week and the FED may be tempted to hold of cuts until the next meeting The Stock Market is has put a temporary pause on the rally until after the decision and verbiage after. On the Corn front we have July Grain Option Expiration on Friday. The market is down again and the weather forecast could have the market bottom out and reverse course back to higher prices. Funds are projected to be long 211,000 contracts and some traders believe the market is overbought. I have been in the business since 1981 and I could never remember a planting season so bad. Some traders from the 1970s can remember some rough plantings in that decade. In the overnight electronic session the July Corn is currently trading at 445 ¾, which is 4 cents lower. The trading range has been 451 ¾ to 445.
On the Ethanol front Brazilian Sugar mills are closely watching the U.S. Corn Crop for reduced harvest that could boost prices for cereal, raising Ethanol production cost which will open room for Brazilian Ethanol to gain domestic market share. Corn prices jumped 25% since May and Ethanol prices over 20%. Contributed by Marcelo Teixeira with Thomson Reuters. In the overnight electronic session the July Ethanol is currently trading at 1.590, which is .010 lower. The trading range has been 1.610 to 1.590 with 14 contracts changing hands and Open Interest is at 538 positions.
On the Crude Oil front the July contract expires tomorrow so switch and rollover to August today. A U.S. Navy investigator presented evidence of Iran’s involvement in attacks on tankers in the Persian Gulf. Commander Sean Kido, an explosives expert at the Bahrain-based Fifth Fleet, said the attack on the Japanese-operated vessel, the Kokuka Courageous, was a limpet mine planted on the tankers body above the water line. Last nights API showed draws in Crude of .081 Mln, Cushing has builds of 0.52 million, draws in Distillates of 0.05 Mln and Gasoline had builds of 1.46 Mln. In the overnight electronic session the August Crude Oil is currently trading at 5416, which is 5 tics higher. The trading range has been 5459 to 5414.
On the Natural Gas front the market really has no movement because there has been no extreme heat in much of the lower 48. In the overnight electronic session the July Natural Gas is currently trading at 2.333, which is a ½ of a cent higher. The trading range has been 2.349 to 2.318.
Have a Great Trading Day!