We started off the day with MBA Mortgage Applications (09/Jul) and MBA 30-Year Mortgage Rate (09/Jul) at 6:00 A.M., PPI YoY & MoM (Jun) and Core PPI YoY & MoM (Jun) at 7;30 A.M., EIA Energy Stocks at 9:30 A.M., Fed Chair Powell Testimony at 11:00 A.M., Fed Beige Book at 1:00 P.M. and Dairy Product Sale at 2:00 P.M.

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On the Corn front, we traded higher in yesterday’s action. We will be looking and following weather with the latest forecast of a hot and dry weather from here through August and maybe September. And South America’s crop and what they can export we see a possibility of U.S. supplies tighten up and we will start to see more movement in the export market. With these factors and tight carryover at best, we could see the bulls back in the market off tomorrow’s weekly Export Sales data. Also, remember this market is worried about yields.

On the Ethanol front, the market is experiencing a significant recovery as drivers are hitting the road and driving again and soaring gasoline demand. The two recent court decisions put optimism on a detour short-term. The big ruling over the Trump Administration’s decision to sell E15 year round.

On the Crude oil front, tomorrow is the Last Trading Day for the August Crude Oil. The API data came in yesterday with Stocks down-4.079M, Cushing-1.585M, gasoline-1.545, and distillates a large build of +3.699M. All in all this market is trading a little pressure at the moment. The OPEC stalemate could elevate prices while traders are weighing the recovery of the coronavirus pandemic.

On the Natural Gas front, Royal Dutch Shell plc, said Monday it signed the World’s first term contract to supply carbon-neutral liquified natural Gas (LNG) to PetroChina Co. LTD subsidiary. Shell signed a five-year agreement with PetroChina Co. LTD (PCI). At the moment it has not revealed how much LNG would be supplied or when the agreement begins. Shell said it will work with PCI to offset carbon emissions from each cargo across the LNG value chain using carbon credits from natured-based projects.