Good Morning,
We start the day with Export Sales and Initial Jobless Claims at 7:30 A.M. followed with EIA Gas Storage at 9:30 A.M. On the Corn front U.S. Midwest weather uncertainty is adding premium to the grain complex and there is talk of U.S. farmers selling while the basis is dropping according to Jerry Gidel, Grain Analyst here at The Price Group. Also chatter of investors worried about being caught overly short.
Phil Flynn also spoke with a farmer yesterday about what farmers in the field feel. It is the terrible 2s, too much cold, too much rain and now we are going to have too much heat. In the overnight electronic session the July Corn is currently trading at 388 ½ which is 3 ¾ of a cent higher. The trading range has been 389 to 385. Today we will look at the Export Sales and tomorrow's Crop Production USDA Supply/Demand data.
On the Ethanol front the market is once again quiet as a church mouse again in the overnight electronic session. The July contract settled at 1.566 and is currently showing 1 bid @ 1.568 and 7 offers @ 1.585 with Open Interest at 1,215 contracts. With Ethanol restrictions lightening up and the bio-fuels all but certain to be in our gas tanks while exports on the rise all eyes will be looking at Corn yields.
On the Crude Oil front another significant draw on Crude Oil except yesterday we had large builds in Gasoline and Distillates while you throw in concerns about the OPEC deal that may be less unified according to some traders with several Middle Eastern countries severing ties with Qatar sending them to the dog house. The question is, are all the countries unified in that pact to put Qatar on an island of its own? In the overnight electronic session the July Crude Oil is currently trading at 4554 which is 18 points lower. The trading range has been 4618 to 4533.
On the Natural Gas front the market is looking ahead to the 90 degree plus heat coming our way the next couple of days and sticking around for a while. We also have the weekly EIA Gas Storage today and time for Scott Disavino’s Thomson Reuters weekly poll with 25 analysts participating. The poll expect injections to rise anywhere from 80 billion cubic feet (bcf) to 111 bcf with the medium 98 bcf. This compares to 85 bcf last week, 68 bcf a year ago and the five-year average increase of 94 bcf. This morning at 6:30 A.M. the market was trading over 1 cent higher but the July contract is currently last at 3.015 which is a ½ of a cent lower. The trading range has been 3.043 to 3.003.
Have a Great Trading Day