Storms that started late last week and some farmers in certain growing areas are doing backflips while others did not receive rain that was forecasted and others are concerned with flooding. As I mentioned, the storms produced plenty of rain and I will get updates from down on the farm throughout the day. We also have weekly Crop Progress at 3:00 P.M. In the overnight electronic session the September corn is currently trading at 336 ½, which is 1 ½ cents higher. The trading range has been 338 to 332 ¾.
On the Ethanol front there were no trades posted in the overnight electronic session. The August contract settled at 1.464 and is currently showing 1 bid @ 1.441 and 1 offer @ 1.467. An early doubtful spread in the direction of this market as Crude and Gas prices edge lower and investors’ concerns about the overall Corn crop prices. As even in an election year the Ethanol Mandate vote may come into play.
On the Crude Oil front the September contract is currently trading at 4380 which is 39 points lower. The trading range has been 4437 to 4369 so far. We are just trading at support with no great passion in the market as we are at make or break where the market is headed next. The U.S. dollar is trading lower and the stock market is edging higher after following the Asian market retreat. If the rally continues that would be two factors that could be supportive to this market.
On the Natural Gas front the August contract is currently trading at 2.792, which is 1 ½ of a cent higher. The trading range has been 2.818 to 2.776. The heat wave around the country could be supportive a move to $3 as we are at historic lows in supplies.