Finally, Summer Temperatures
Good Morning!
As we close in on the 4th of July weekend, we kick off this Thursday with Export Sales, 1st Quarter GDP and Initial Jobless Claims at 7:30 A.M. The weekly EIA Gas Storage at 9:30 A.M. and Hogs & Pigs at 2:00 P.M. Today’s reports should shine a light of the climate change in the market place took effect the last six months. Remember, First Notice Day on all July Grains is tomorrow. We could see a busy day with the activity with rollovers and the reports and weather could bring some premium back into play as the bears seem firmly in control at the moment. In the overnight electronic session the September Corn is currently trading at 367 ½ which is 1 ¼ of a cent higher. The trading range has been 368 ½ to 365 ¾.
On the Ethanol front there were no trades posted in the overnight electronic session. The August contract settled at 1.482 and is currently showing 1 bid @ 1.474 and 1 offer @ 1.484 with open Interest at 1,071 contracts.
On the Crude Oil front it looks like the market is finally coming to grips with reality this current oil glut could only be a mirage. The API and EIA weekly data failed to show shale production cuts and overall production down and expect rig-counts not to grow as the oil industry’s investments are paying back loans to banks and not into exploration and new technology that has been a huge boon to the industry these past 5-10 and yes even 20 years. I do expect a pretty good run from here given certain countries cannot afford the infrastructure to get the oil out of the ground and the current geo-political climate. In the overnight electronic session the August Crude Oil is currently trading at 4526 which is 52 points higher. The trading range has been 4538 to 4475.
On the Natural Gas front hotter weather should boost prices even further. Today we have the weekly EIA Gas Storage report, which the Thomson Reuters poll of 22 analyst participating showed injection builds anywhere from 40 bcf to 60 bcf with the average consensus of 52bcf. This compares to last week’s injection build of 61 bcf, the 1 year of 41 bcf and the five-year average increase of 72 bcf. Phil Flynn of the Price Group is predicting a build of 47 bcf. Hot weather during the week increased the amount of gas burned by power generators to meet higher demand for air-conditioning , leaving less fuel available for storage. Thanks Scott Disavino with Thomson Reuters. In the overnight electronic session the August Natural Gas is currently trading at 3.089 which is a ½ of a cent lower. The trading range has been 3.107 to 3.077.
Have a Great Trading Day