Good Morning!
We kickoff the trading day with Export Sales and Initial jobless Claims at 7:30 A.M. EIA Gas Storage at 9:30 A.M. and the Cold Storage report at 2:00 P.M.
With the weekly EIA Gas Storage report out today and damage assessments from Tropical Storm Cindy we will start out talking Natural Gas. The weekly Thomson Reuters poll with 22 analysts participating expect injection numbers to be anywhere from 50 billion cubic feet (BCF) to 67 bcf, which compares to builds of 78 bcf last week, the 1-year of 63 bcf and the five-year average of 82 bcf. Hot weather from the Plains and Southern states moving to the Midwest should show up in demand which should pressure the power grid especially with the storm hitting the South where we move Energy. In the overnight electronic session the July Natural Gas is currently trading at 2.913 which are 2 cents higher. The trading range has been 2.928 to 2.890.
On the Crude Oil front do we blame it again on Tropical Storm Cindy that may have stopped the freefall for now? No question production will go down with Oil rigs evacuated for workers safety. But with layoffs and questionable job security, do workers go back or find a new job? Which further finds investors weighing the odds of demand destruction and talk of an Oil glut having the Bulls and Bears Duke it out in and oversold market in which markets trade on fear and greed and tend to overreact. In the overnight electronic session the August Crude Oil is currently trading at 4276, which is 23 points higher.
The trading range has been 4290 to 4226. The Energy Investors will be looking at the damage of the Tropical Storm, Rig-counts and Energy Companies downgraded as they fight an uphill battle to be solvent.
On the Corn front more boring news as the grain complex assesses weather, Exports here and South America, which their crop continues to be rated excellent and this competitor to U.S. Exports will also hinge on the U.S. dollar. In the overnight electronic session the July Corn is currently trading at 367 ¼, which is 1 ½ of a cent lower. The trading range has been 369 ¼ to 367 ¼. Tomorrow is Last Trading Day on July Options in grains and interest rates so check your positions.
On the Ethanol front the August contract is last at 1.505, which is 1 ½ of a cent lower. The trading range has been 1.506 to 1.502. The market is currently showing 4 bids @ 1.500 and 2 offers @ 1.510 with Open Interest at 1.506 contracts while activity is perking up in the September contract while the July contract is moving to expiration.
Have a Great Trading Day!