We start off the day with MBA Mortgage Applications (20/Aug) and MBA 30-Year Mortgage Rate (20/Aug) at 6:00 A.M., Durable Goods Orders MoM (Jul), Durable Foods Orders Ex Transportation MoM (Jul), and Durable Goods ex Defense MoM (Jul) at 7:30 A.M., EIA Energy Stocks at 9:30 A.M., 2-Year FRN Auction at 10:30 A.M., 5-Year Note Auction at 12:00 P.M. and Dairy Product Sales at 2:00 P.M.

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On the Hurricane front, we have 3 Disturbances we are watching. #1 is currently a tropical wave located in the central Caribbean Sea, near or across the Yucatan Peninsula, and the western Gulf of Mexico, we will be monitoring this closely as it has a 30% chance of formation in the next 48 hrs., #2 is a low pressure that is producing disorganized showers and thunderstorms in the central tropical Atlantic, we will watch this storm as well with a 30% chance to organize in the next 48hrs. also, and #3 which has a 20% chance of organizing in the next 48hrs., it is moving west-northwestward and is moving at 10-15 mph. over the eastern tropical Atlantic.

On the Corn front, the market traded higher in yesterday's action following soybeans lead. Traders are still pondering what got into the grain complex in yesterdays trading session. Was it a case of Turnaround Tuesday or just a wake-up call from the oversold choppy market. There were very good flash sales but on good flash sales previously the market yawned it off and went back to it’s summer slumber. Funds got into the act and were net buyers of 6,000 corn contracts. Some traders are still on the side with the PROFARMER tour seems to keep finding a diamond in the rough. By that I mean they have seemed to have found some acreage with a good crop that had been thought to be ravaged by drought. However, last nights heavy rains and thunderstorms coupled with high winds could have caused damage. In the overnight electronic session the December corn is currently trading at 543 ¾ which is 1 ½ of a cent lower. The trading range has been 546 ¾ to 541.

On the Ethanol front, Carbon Pipelines seek to hit net-zero ethanol. These carbon pipelines offer a lower ethanol carbon footprint and tax credits. Two companies are pitching the carbon dioxide pipelines that would crisscross six states and combine to sink as much of 24 million tons of carbon emissions into geological formations – – if they can convince landowners and others their pipelines will help the local ag economy. Again there was zero      activity in the ethanol futures with the September contract settling once again at 2.220.

On the Crude Oil front, the market continues to roll as we have seen a spike of 500-600 points in two trading sessions. Could the bottom be in or will there be another Covid scare that could sink and cast a pall on the market. Today’s EIA Energy Stocks could play a big hand as OPEC and OPEC+ will consider production cuts if the market dips below $60 a barrel. Last night API Energy Stocks had draws across the board with crude oil -1.622M, Cushing -0.485M, gasoline -0.985M and distillates -0.245M. In the overnight electronic session the October crude oil is currently trading at 6796 which is 42 points higher. The trading range has been 6805 to 6692.

On the Natural Gas front, with all of the summer demand being priced into the market, the market seems to have cooled it’s heels a little bit. The market is lower again in the overnight electronic session with the September contract currently trading at 3.865 which is .031 lower. The trading range has been 3.902 to 3.858. I will have estimates for the EIA Gas Storage in tomorrow’s report. Meanwhile join me at 7:30 A.M. tomorrow on Rural Radio Channel 147 Sirius XM as we discuss Export Sales, Ags and outside markets.