Good Morning!
The weather and Friday’s Grain Stocks and Planted Acreage may give the Grain complex the shake and bake. Will commercials buy value or other heavy hitters continue to aggressively sell and thwart any rally that weather may change the downside market bias. If the forecasts are correct with hot and dry weather this time of year after a tough growing season we could see a game changer for tasseling and poor pollination. These factors we ponder heading into the 4th of July weekend and from what I surmised the crop is behind for this part of the year. Not a great start, however it is not over and the bears seem to be in control. Remember Friday is First Notice Day on all July Grain so I will switch my focus to the September Corn contract which is currently trading at 368 which is ¼ of a cent higher. The trading range has been 369 to 367 ½. No pun intended but after Friday’s reports we will have to weather the storm.
On the Ethanol front there were no trades posted in the overnight electronic session. The August contract settled at 1.504 and is currently showing 1 bid @ 1.490 and 2 offers @ 1.504 with Open Interest at 1,016 contracts.
On the Crude Oil front the API actually released a build in the weekly inventories after a tropical storm disrupted activity in the Houston Shipping Channel and Oil Rigs in the Gulf of Mexico. API or CNN fake news? Or do snowflakes melt? We will wait and see if the weekly EIA Energy Stocks show a horse of another color at 9:30 A.M. Quite frankly, yesterday’s API Energy Stocks numbers do not add up. Or should I say subtract. In the overnight electronic session the August Crude Oil is currently trading at 4401 which is 23 points lower. The trading range has been 4424 to 4367. Market manipulators be damned Full speed ahead!
On the Natural Gas front the July contract goes off the board today. The market seems to be buying into hot and dry weather that is forecasted. Tomorrow we the EIA will release it’ weekly Gas Storage data and I will pass on the Thomson Reuters poll of analysts’ predictions of injection builds in tomorrow’s report. In the overnight electronic session the August Natural Gas is currently trading at 3.109, which is 4 ½ cents higher. The trading range has been 3.117 to 3.047.
Have a Great Trading Day!