Busy Day Ahead
This morning we have June Home Sales at 9:00 A.M., EIA Energy Stocks at 9:30 A.M., Dairy Product Sales at 2:00 P.M., FOMC Meeting and more Earnings. On the corn front the market is fighting on a lesser percentage of good to excellent rating, weather and carryover from last year. The Grain complex was a little higher in the overnight electronic session. The September corn is currently trading at 369 ¼ which is up a ½ of a cent. The trading range has been 370 ¾ to 367 ¼.
On the Ethanol front there were no trades posted in the overnight session. The August contract settled at 1.505 and is currently showing 1 bid at 1.491 and 1 offer at 1.511 and Open Interest evaporating to 202 contracts.
On the Crude Oil front the API showed a whopping draw of 10.1 million barrels and with the last couple of draws this is significant especially the news from OPEC, Halliburton (NYSE:HAL) and Anadarko. OPEC will stick to export and production cuts and Halliburton and Anadarko will decrease shale production at these current price levels. The September contract is currently trading at 4826 which is 37 points higher. The trading range has been 4859 to 4816 and if the EIA confirms this draw this morning we will be flirting with $50 a barrel in no time.
On the Natural Gas front August contract goes off the board tomorrow so we switch are focus to the September contract which is currently trading at 2.906, which is 2 ½ cents lower. The trading range has been 2.951 to 2.905.