Good Morning!
Busy morning starting at 7:30 A.M. with Exports Sales, Initial Jobless Claims and Producer Price Index (PPI). The weekly EIA Gas Storage will follow at 9:30 A.M. Also, the European Central Bank (ECB) kept their Interest Rates in check and the U.S. dollar is continuing to gain ground after being in sell off mode. The Grains are a mixed bag of tricks with the three Wheat market spreads trading lower between Chicago, Kansas City and Minneapolis trading actively lower while Corn and Soybeans are trading higher at the moment. From here on out we will be trading weather, exports and yield predictions. In the overnight electronic session the September Corn is currently trading at 384 ½, which is 2 cents higher. The trading range has been 387 ½ to 380 ½.
On the Ethanol front the August contract is currently trading at 1.544, which is .004 of a cent higher. The trading range has been 1.544 to 1.531 with 11 contracts traded and Open Interest now lagging behind the September contract at 670 contracts. Expect rollovers to the September contract in the coming days.
On the Crude Oil front the August contract expires today so we will switch is focus to the September contract. Even though we had a technical close on the August contract yesterday above $47 a barrel, which tends to point the market is on the road to getting back in balance settling at 4712. In the overnight electronic session the September contract is currently trading at 4755 which is 23 points higher. The trading range has been 4762 to 4714.
On the Natural Gas front the market is eyeing an already predicted active hurricane season. The Pacific is churning 5 storms that have been categorized Tropical Storm Fernanda, Greg and Eight E while the Atlantic is quiet for now and has more impact on Oil Rigs and Shipping to bolster Energy prices. Today we also have the weekly EIA Gas Storage data and the Thomson Reuters poll of 23 analyst estimating builds anywhere from 21 Billion Cubic Feet (BCF) to 47 bcf compared to last week’s injection number of 57 bcf, the one year at 38 bcf and the five-year average of 59 bcf. In the overnight electronic session the August Natural Gas is currently trading at 3.079 which is .013 of a cent higher. The trading range has been 3.083 to 3.064.
Have a Great Trading Day