The drought tracker has the heat dome over the Dakotas moving east and threatening Iowa’s corn crop and has investors scurrying out of oversold positions. The Grain complex is in short covering mode and is trading higher across the board. In the overnight electronic session the September Corn is currently trading at 398 ¾, which is 6 ¼ cents higher. The trading range has been 401 to 396 ½.
On the Ethanol front in the overnight electronic session the August contract traded 3 contracts at 1.520, which is 2 tics higher. The market is currently showing 1 bid @ 1.526 and 1 offer @ 1.540 with Open Interest at 1,095 contracts.
On the Crude Oil front the market is still trading in disbelief even when the inventory data tells another story. In the overnight electronic the August Crude Oil is currently trading at 4396, which is 27 points lower. The trading range has been 4472 to 4365. After Friday’s positive Unemployment number and Janet Yellen is scheduled to speak we could have Interest Rate Talk that could create further choppy trade.
On the Natural Gas front rig counts on Friday were higher but the oversold market was not selling into further production and this market is looking to find a bottom. In the overnight electronic session the August contract is currently trading at 2.914 which is 4 cents higher. The trading range has been 2.925 to 2.870. The heat dome coming from the plains could spark a rally in this market as well.