Weather continues to drive grains

Corn and Ethanol Report

Hot weather the past two days turns into autumn-like weather today after the rains last night. In the month of July?

In the overnight electronic session, September corn is currently trading at 360 which is ¼ of a cent lower. The trading range has been 361 to 359 ¼ and could be ready for a further break to the downside.

On the ethanol front, the August contract is currently trading at 2.084 which is .007 of a cent lower. The trading range has been 2.091 to 2.084. The September contract is posted a trade at 1.984 which is .002 of a cent lower in what looks to be rollover activity.

On the natural gas front, traders are watching the track of Tropical Storm TWO carrying sustained winds of 30 knots moving west-northwest at 17 knots. Forecasters are warning that residents of the Lesser Antilles, the westernmost in the Caribbean, should keep an eye on the system. The Cone shows a very possible threat to the Gulf and could disrupt injections. The market is not overreacting at this moment with the August contract currently trading at 3.780, which is .008 of a cent higher in the overnight electronic session. The trading range has been 3.793 to 3.755 so far.

On the crude oil front, the contracts are trading slightly higher with the API data showing a weekly draw of 600,000 barrels. In the overnight electronic session, the September is currently trading at 10247 which is 8 cents higher. The trading range has been 10261 to 10179 so far.

Today's EIA data may bring prices down. Two Ukrainian fighter jets were shot down by Russian loyalists — this could change the focus of traders in today's session, switching back to geopolitical fears.

About the Author

Market Analyst at The PRICE Futures Group

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