We have a whole lot of earnings before and after the bell and reports on this Full Moon day begin with Business Inventories and Retail Sales at 7:30 A.M., Capacity Utilization and Industrial Production at 8:15 A.M. and API Energy Stocks at 3:30 P.M. U.S. Treasury Secretary Steve Mnuchin told reporters that he expects to have another phone call this week to resume U.S.-China discussions on a trade agreement. While the U.S. economy is rolling with record numbers in the jobs sector and many other positives the Chinese economy is stumbling and with the beef and pork crisis they would hope to put and end to tariffs. And it could happen with a fair deal with the goal posts at the same height and the ball is in their court. On the corn front the Crop Progress report gave a good report card on whatever crop we have and the sellers piled on. We also must remember the crop has little margin for error and weather will continue to be a key factor how investors play their hand. I still look to buy value but the current mood is we have not seen a floor yet. As I spoke before the if a trade deal is reached between the US and China and the FED cuts Interest Rates this market like other tangible hand to mouth commodities will skyrocket. In the overnight electronic session the December Corn is currently trading at 440, which is 7 cents lower. The trading range has been 447 ¼ to 438 ½.
On the Ethanol front the market is trading lower mostly on pressure from the Corn market. In the overnight electronic session the August Ethanol is currently trading at 1.534, which is .024 lower. The trading range has been 1.556 to 1.532. The market is currently showing 2 bids @ 1.522 and 2 offers @ 1.529 with 14 contracts traded and Open Interest at 662 contracts.
On the Crude Oil front the market is in chop mode using $60 a barrel as a benchmark to the next move which I expect to be an upside move. We should see draws in Crude Oil, Distillates and Gasoline with OPEC and Non-OPEC production cuts not to mention disruptions from the storm in the Gulf of Mexico. Rumor mill and whispers that a UAE oil tanker that is missing since Saturday night as it passed through the Straight of Hormuz and allegedly stopped transmitting as it drifted into Iranian waters. It just seems Iran wants to up the ante and sponsor terrorism at any cost while aiding and abetting terrorist dictators. This too shall pass. As they continue to prove they are an adversary to Free Global commerce. In the overnight electronic session the August Crude Oil is currently trading at 5967, which is 9 points higher. The trading range has been 6002 to 5918.
On the Natural Gas front the market is dumping after demand destruction and weather forecast changes after storm Barry. In the overnight electronic session the August Natural Gas is currently trading at 2.328, which is 8 cents lower. The trading range has been 2.408 to 2.317.
Have a Great Trading Day!
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