Grains Bounce After the Crush on Tuesday
Rains yesterday and more forecasted for today really pummeled the market in yesterday’s trading session. The sell-off looked to be overdone as markets tend to overreact on any given situation and Tuesday’s action was no different with the entire Grain Complex taking it on the chin. There may be some bottom feeders looking to scoop up some value at these price levels. In the overnight electronic session the September Corn is currently trading at 366 ½ which is 4 cents higher. The trading range has been 366 ¾ to 363 ¾. Mother Nature will dominate price levels if the 5 day weather forecast is correct.
On the ethanol front the September contract posted a trade at 1.550 which is .011 of a cent higher. The current market is showing 1 bid @ 1.544 and 6 offers @ 1.555. 1 contract traded in the overnight electronic session and Open Interest is at 965 contracts. The September is now the lead month with the August contract closing in on expiration with 42 Open Contracts left.
On the crude oil front the API data showed an unexpected build which left investors scratching their head over the data. Crude Oil Stocks were reported a rise of 1.779 million barrels. Cushing, Oklahoma rose 2.562 million barrels while we had draws in product with Gasoline stocks down 4.827 barrels and Distillates down 1.225 million barrels. Maybe this morning’s EIA Energy Stocks will whistle a different tune. In the overnight electronic session the September Crude Oil is currently trading at 4906 which is 10 tics lower. The trading range has been 4927 to 5855.
On the natural gas front the market is trading the news of cooler temperature forecasted for the weekend and the September contract is currently trading at 2.796 which is .023 cents lower. The trading range has been 2.823 to 2.785.