FOMC Meeting on Rates Today
We start of the month with ADP Jobs Payroll at 7:20 A.M., Construction Spending and ISM Manufacturing Index at 9:00 A.M., EIA Energy Stocks at 9:30 A.M., Fed Announcement at 1:00 P.M., Cotton System, Dairy Product Sales, Fats & Oils, and Grain Crushings at 2:00 P.M. I am not looking for the FED to raise rates this time around but possibly in September. Scattered storms and more favorable headlines than Monday’s USDA Crop Progress were in the news and it looked like the rally and the storms were the culprit of the selloff in Corn and Soybeans. In the overnight electronic session the September contract is currently trading at 370 ½ which is 1 ¾ of a cent lower. The trading range has been 373 to 370.
On the Ethanol front the September contract is currently trading at 1.459 which is .004. The trading range has been 1.463 to 1.459. 8 contracts traded and the market is currently showing 6 bids at 1.457 and 6 offers at 1.462 with Open Interest dropping to 981 contracts.
On the Crude Oil front we had a bearish API Energy Stocks number last night which sold market off further. In the overnight electronic session the September contract is currently trading at 6786 which is 90 points lower. The trading range has been 6852 to 6777. Geopolitical shifts with peaks and valleys should make for an interesting shoulder season with demand outsourcing current supply regardless of last night’s bearish API data. Let’s see if the EIA Energy Stocks number mirror the API data to support the surprise.
On the Natural Gas front the market is currently trading at 2.777 which is a ½ of a cent lower. The trading range has been 2.783 to 2.751. The heatdome expected heading into the weekend in the lower 48 should be supportive to prices.