We start off the day with Redbook YoY & MoM at 7:55 A.M., ISM New York Index at 8:45 A.M., 119-Day and 42-Day Bill Auction at 10:30 A.M., API Energy Stocks at 3:30 P.M. and Total Vehicle Sales at 7:00 P.M. On the Corn front the USDA released its Crop Progress Report showing U.S. farmers have 93% of the corn crop in the ground, ahead of the five-year average of 80% but below the trades expectations of 95%. Meanwhile, 78% of the nation’s Corn has emerged vs. the 73% five-year average. In its report, the USDA estimates the Corn good/excellent rating at 74%, up from 70% a week ago. The futures traded lower yesterday with the same old reasons or cast of characters, concern with domestic demand, weather forecasts changed for the better, increase of export competition from South America, the rhetoric between Beijing and Washington on several issues that have changed the feel-good relationship and could damage the trade deal if it is not a mirage already and funds remain large net short. It looks like we may be back to the days of tight trading ranges like a week ago. The July contract is currently trading at 323 ¼ which is unchanged. The trading range has been 324 to 322 ¼.
On theEthanol front, Pacific Ethanol (NASDAQ:PEIX), a leading producer in low carbon renewable fuels and high-quality alcoholic products in the U.S. has announced it is increasing its leadership succession plan. The board as appointed Mike Kandris as co-president and co-CEO. The company announced it is increasing its focus on high -quality alcohol production. Pacific co-founder and Chairman Bill Jones said, demand for high-quality alcohol, the primary ingredient for hand sanitizers and disinfectants has grown significantly since the onset of the COVID-19 pandemic. “These facilities have been part of our diversification strategy into high-quality alcohol, yeast and additional protein products. There were no trades posted in the overnight electronic session. The July contract settled at 1.148 and is currently showing 1 bid at 1.123 and 1 offer at 1.180 with Open Interest dropping to 114 contracts.
On the Crude oil front offshore oil rigs continue to decline along with project cancellations, spending cuts, well shut ins: It looks like the problems and dilemmas plaguing the onshore oil producers have spread offshore, according to Irina Slave writer for Oilprice.com The oil is trading higher this morning as hopes OPEC and OPEC+ will likely this week via teleconference to extend oil production cuts. In the overnight electronic session, the July Crude Oil is currently trading at 3638 which is 94 points higher. The trading range has been 3651 to 3528. Remember API’s at 3:30 P.M. CST.
On the Natural Gas front a change in the weather forecast calls for heat this week which could help this ship from sinking further. This market has been fighting with demand fears and a glut way before the coronavirus. After yesterday's beating the market is attempting to level off. In the overnight electronic session, the July Natural Gas is currently trading at 1.779 which is .005 higher. The trading range has been 1.794 to 1.758.