Rate Cut Tomorrow?
Good Morning!
We kickoff the day with Housing Starts and Permits at 7:30 A.M., API Energy Stocks at 3:30 P.M. and the first day of the FOMC Meeting. On the Corn front the market is trading lower with better crop conditions said about Brazil and if you believe yesterday’s Crop Progress 59% of Corn condition was rated good/excellent. Funds have been selling on strength and we do have Option Expiration on July contracts on Friday, which is also the first day of summer and we have yet to string a few warm days together this late in the growing season. In the overnight electronic session the July Corn is currently trading at 447, which is 7 ¾ cents lower. The trading range has been 458 to 442 ¾.
On the Ethanol front the July contract is currently trading at 1.618, which is .0215 higher. The trading range has been 1.618 to 1.576. The market is currently showing 2 bids @ 1.576 and 1 offer @ 1.607, with 3 contracts changing hands and Open Interest dropping to 400 contracts.
On the Crude Oil front the July contract is currently trading at 5196, which is 3 tics higher. The trading range has been 5202 to 5150. Tonight’s API we are expecting draws on Crude of roughly 3 million barrels. As far as the risk on situation with Iran and her proxies we are sending more troops in the Middle East for defensive purposes.
On the Natural Gas front the market is going nowhere fast this morning. The July contract is currently trading at 2.388, which is .002 higher. The trading range has been 2.404 to 2.368.
Have a Great Trading Day!