We kickoff the week with Chicago Fed National Activity Index at 7:30 A.M., N.Y. Fed Treasury Purchases 10 to 22.5 yrs. At 9:30 A.M., Export Inspections at 10:00 A.M., 3-Month and 6-Month Bill Auction at 10:30 A.M., Fed Williams Speech at 2:00 P.M. and Crop Progress at 3:00 P.M.

On the Corn Front Iowa’s crops are worsening and the thunderstorms that moved through patches of Iowa, Illinois, Wisconsin, and Indiana pressured the market in the overnight. But we could have sustained some wind damage in these strong storms as rains and winds were heavy. Agronomists agree the Corn Belt crop looks go0d overall but needs more rain, while the break in hot temperatures is not forecasted past Tuesday.

We could have some surprises on Export Inspections and Crop progress today. In the overnight electronic session, the July corn is currently trading at 644 ½ which is 10 ¾ cents lower. The trading range has been 651 ¼ to 636 ½.

On the Ethanol Front only whispers as to when the Supreme Court hands down their decision on refinery waivers and the EPA’s broad powers. India’s Hindustan Petroleum Corporation Limited (HPCL) becomes the first marketing oil company to sell blended ethanol at its retail outlets in Jammu and Kashmir region. HPCL will tackle the governments requirement of 20% ethanol blending in gasoline by 2025. There were no trades posted in the overnight electronic session. The July contract settled at 2.460 and is currently showing no market with Open Interest at 20 contracts.

On the Crude Oil Front tomorrow is the Last Trading Day on the July contract so we will move our focus to the August contract. The futures remain supported by global oil demand recovery trade. The uptrend in the oil markets come despite the hawkish signals from the Fed, putting the U.S. dollar higher, and that could be attributed to markets buying into the global demand narrative.  Analysts also see signs of improvement of India’s downstream products demand, as the country relaxed lockdown restrictions. Also, China has launched crude oil options for foreign traders which should have more soundbites in the coming days and weeks.  In the overnight electronic session, the August Crude Oil is currently trading at 7132 which is 3 tics higher. The trading range has been 7205 to 7112.

On the Natural Gas Front believe the natural gas glut has evaporated. As we see demand spike again with extreme temperatures, we should see even higher prices closing out this hot summer. After that we will have shoulder season, but extreme cold temperatures and exports could keep higher energy prices rolling. We will most definitely this resource to keep the economy moving at all. In the overnight electronic session, the July natural gas is currently trading at 3.175 which is 4 cents lower. The trading range has been 3.214 to 3.169.

Have A Great Trading Day!
Dan Flynn

Tune in on Thursdays at 7:30 A.M. As we discuss Export Sales on Rural Radio on Channel 147 Sirius XM.

Call me with any questions at 1-888-264-5665 or 312-264-4374 cell 312-213-7678 email [email protected]