We started off the day with Personal Income MoM (May), Personal Spending MoM (May), PCE Price Index YoY and MoM (May) and Core PCE Price Index YoY and MoM (may) at 7:30 A.M., Michigan Inflation Expectations Final (Jun), Michigan Consumer Sentiment Final (Jun), Michigan 5-Year Inflation Expectations Final (Jun), Michigan Consumer Expectations Final (Jun) and Michigan Current Conditions Final (Jun) at 9:00 A.M., NY Fed Treasury Purchases 2.25 to 4.5 yrs. At 9:30 A.M., Baker Hughes Oil & Total Rig Count at 12:00 P.M. and Cattle on Feed at 2:00 P.M.

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On the Corn front, acreage, exports, and weather have dominated this market during the current selloff. The few rainstorms we have seen through the growing season have now come in abundance to the eastern Corn Belt while the Western and Northern Corn Belt are praying for rain. But another thing to watch is flooding in certain parts of the Eastern Corn Belt with the big rains that have materialized and not bode well for new planted acres. In the overnight electronic session, the July corn is currently trading at 653 ¾ which is a ½ of a cent higher. The trading range has been 659 ½ to 651 ¾.

On the Ethanol front, Myra P. Saefong with CBS MarketWatch reports that steel and ethanol prices lead commodities as Lumber cut its year-to-date gains 30% in June alone. This shows demand in biofuels and infrastructure are leading the market now. There were no trades posted in the overnight electronic session. The August contract settled at 2.400 and is currently showing no market with Open Interest at 2 contracts.

On the Crude Oil front, U.S. oil demand may drive crude oil inventories to historic lows. What a difference from a year ago with the pandemic fears of oversupply. The Canadian oil sands output is fully recovered from Covid. And yes, when we are paying more at the pump I must remind or reiterate the huge mistake of closing the keystone Pipeline XL. Just another sensational move to cut jobs and make us more dependent on imports from enemies and drive up the cost of living. It sounds very backward to me. In the overnight electronic session, the August crude oil is currently trading at 7310 which is 20 points lower. The trading range has been 7363 to 7285.

On the Natural Gas front, the street was expecting the EIA Gas Storage to have a build of 68bcf, and when the injection number came in only at a build of 55bcf the market was further on a bull run. China is expected to use more natural gas moving onward to 2035. This just shows why this market is gold in the coming decades for exports to Europe and Asia alone. Solar and wind power alone will not be able to keep the electric cycle going on the power grid to meet demand. And that is a proven fact as California taught us last year when demand is at its peak there is nothing like the combustible engine to spark the power grid for many uses that are taken for granted. This market is rolling on domestic and global demand and that seems to be the future. In the overnight electronic session, the July natural gas is currently trading at 3.460 which is .042 cents higher. The trading range has been 3.473 to 3.415.