We start off the day with MBA Mortgage Applications and MBA 30-Year Mortgage rate (13/Aug) at 6:00 A.M., Housing Starts & Permits Yoy & MoM at 7:30 A.M., EIA Energy stocks at 9:30 A.M., 20-Year Bond Auction at 12:00 P.M., FOMC Minutes at 1:00 P.M., and Dairy Product Sales at 2:00 P.M.
On the Hurricane Front Depression Fred has buried Florida in water and is moving northeast at 20 mph and it is currently located at the Kentucky, Ohio and West Virginia border. Tropical Storm Grace is moving west and is expected to move into the eastern Yucatan Peninsula of Mexico and gaining hurricane strength. The current cone is hitting Mexico after Vera Cruz State and Jamaica. It is currently located off the southern coast of Cuba. And Tropical Storm Henri is moving west at 7 knots. The current cone has the storm turning up North in the Atlantic missing the U.S. Coastline.
On the Corn Front the market ended up lower near session lows in yesterday’s action.USDA dropped crop ratings which offered support. Pro-Farmers crop tour is in full swing and losses in the outside markets continue to add to corn’s woes as harvest pressure comes in to play with a weaker export market. In the overnight electronic session the December corn is currently trading at 565 ½ which is 2 cents higher. The trading range has been 568 ½ to 561 ¼.
On the Ethanol Front very quiet news this week with the unceremonious fall of Afghanistan over the weekend. The suits in Washington once again refused to heed the Military’s advice and warnings and this debacle has put domestic issues on the side for the moment. There were no trades posted in the overnight electronic session. The September contract settled at 2.220 and is currently showing no market or Open Interest.
On the Crude Oil Front we should be seeing more risk premium in the market with Biden’s blunders in Afghanistan and the Keystone Pipeline to only name two. Yesterdays API Energy Stocks also boosted support with the crude oil down-1.163M, Cushing-1.753M, gasoline-1.979M and distillates Plus +0>524M. In the overnight electronic session the October crude oil is currently trading at 6710 which is 76 points higher. The trading range has been 6723 to 6618.
On the Natural Gas Front, Natural Gas Intelligence reports fading heat in the latter part of August which could lead the market in retreat if the market forecasts hold up. I will have the poll of analysts tomorrow for the EIA Gas Storage data. In the overnight electronic session the September natural gas is currently trading at 3.848 which is .011 higher. The trading range has been 3.866 to 3.807.
Join me tomorrow on Rural Radio Channel 147 SIRIUS XM as we talk the Export Sales number and various commodity news!
Have A Great Trading Day!
Dan Flynn -