This morning we have one report and that is the Producer Price Index (PPI) which may shed light and change the negative mood and feelings that are based on fear. On the Corn front Brazilian farmers are expected to plant more Corn in the 2019/2020 crop season attempting a favorable revenue margin taking advantage of the weak U.S. Corn crop and the U.S.-China trade war. Brazil is expected to grow a record 17.93 hectares but remember it is not what you plant but what you grow and that prediction would only be bearish news if the growth becomes reality. In the overnight electronic session the December Corn is currently trading at 420 ½ which is 2 ¼ cents lower. The trading range has been 420 ½ to 417.

On the Ethanol front the September contract is currently trading at 1.437 which is .002 lower. The trading range has been 1.439 to 1.437. The market is currently showing 2 bids @ 1.431 and 3 offers @ 1.444 with 3 contracts traded and Open Interest at 555 contracts.

On the Crude Oil front the market is coming to grips that we are back to basic supply/demand  numbers and eventually you can only skew those numbers so far. With Saudi Aramco pushing to move forward going public and they are already committed to production cuts that are a lock and there is a lot of other bullish fundamentals to key this market’s rise. In the overnight electronic session the September Crude Oil is currently trading at 5435 which is 181 points higher. The trading range has been 5471 to 5237.

On the Natural Gas front the market has run out of steam as we move forward to shoulder season. In the overnight electronic session the September contract is currently trading at 2.123 which is a ½ of a cent lower. The trading range has been 2.136 to 2.064.

Have a Great Trading Day!
Dan Flynn