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Trade War Escalating?

Published 06/20/2018, 02:13 AM
Updated 07/09/2023, 06:31 AM
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We kickoff this Tuesday with Housing Starts and Permits at 7:30 AM. Milk Production at 2:00 P.M. and API Energy Stocks at 3:30 P.M. We also have Last Trading Day on July Crude Oil. More tariff talks has the commodity markets attention. We have a higher dollar and the commodity markets are seeing red. In the overnight electronic session, the July corn is currently trading at 347 ¾ which is 8 ¼ cents lower. The trading range has been 356 to 347 ¼. Talk is cheap but investors are keen to see how this situation will unravel if cooler heads prevail. There will be buyers for grains, especially at these prices.

On the Ethanol front, the July contract is currently trading at 1.380 which is .019 lower. The trading range has been 1.399 to 1.379. 32 contracts traded and Open Interest is declining to 741 contracts. The market is currently showing 1 bid at 1.375 and 1 offer at 1.379.

On the Crude Oil front, the market is seeing red as well while the tariff talks go tit for tat. The July contract expires today and we have the weekly API Energy Stocks later today, as well. In the overnight electronic session, the August Crude Oil is currently trading at 6467 which is 102 points lower. The trading range has been 6574 to 6443. We also have an upcoming OPEC and Non-OPEC meeting June 22nd in Vienna and expect a slight rise in production.

On the Natural Gas front, the July contract is currently trading at 2.916 which is 3 ½ cents lower. The trading range has been 2.955 to 2.915.

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