Iran Playing with Dynamite
Good Morning!
Iran is heading to the United Nations court to plead their case on U.S. sanctions and further upped the ante to close the Strait of Hormuz to free shipping channels. In my opinion that is not a good judgement call and could lead to dipterous consequences. Meanwhile Mexico and the U.S. are inching ever so closer restructuring and tweaking the North American Free Agreement (NAFTA). Hopefully
We will reach a solution today and we will have talks with Canada stretching into September. In the overnight electronic session the September Corn is currently trading at 345 ¼, which is 3 ¼ cents lower. The trading range has been 348 ¾ to 344 ¾.
On the Ethanol front the September contract posted a trade at 1.303, which is .010 lower. 34 contracts changed hands and the market is currently showing 2 bids @ 1.297 and 2 offers @ 1.306 with Open Interest dropping to 853 contracts.
On the Crude Oil front the market technically looks in overbought mode, however fundamentally the market is holding with the Iran sanctions on the verge of becoming a reality and the threats of closing the Strait of Hormuz should keep the market in bull mode minus Iranian and Venezuelan oil off the market. In the overnight electronic session the October Crude Oil is currently trading at 6890, which is 18 points higher. The trading range has been 6893 to 6834.
On the Natural Gas front even with the heat wave across the lower 48 the market just cant rally above the $3 level and looks extremely bearish. In the overnight electronic session the September contract is currently trading at 2.892, which is 2 ½ cent lower. The trading range has been 2.915 to 2.883.
Have a Great Trading Day!