We started off the day with Building Permits MoM (Jun), Building Permits (Jun), Housing Starts MoM (Jun), and Housing Starts (Jun) at 7:30 A.M., Redbook YoY at 7:55 A.M., 42-Day Bill Auction at 10:30 A.M. and API Energy Stocks at 3:30 P.M.

image source

On the Corn front, the market ended up mostly unchanged in yesterday's action. The market was strong out of the blocks with bullish fundamentals and weather forecasts. If you're not facing drought conditions and have been saturated with rains now have growing concerns of low levels of nitrogen. Of course, the big story why the market was under pressure was the Delta variant of the Covid virus and inflation fears as the bond market rallied. We are still looking at low carryover and a weak South American crop and these bullish factors will be realized when buyers start to get more aggressive as demand is sure to heat up.

On the Ethanol front, the drought impact is concerning ethanol operators about not getting local grain needed to keep going. This is just another domino in place that could ignite what has been a quiet market with stocks and production.

On the Crude Oil front, today is Last Trading Day on the August contract. The market is still trading sheepishly with the Covid Delta variant creating fears of a glut of supply along with the OPEC+ agreeing to ramp up ore barrels and take off the production cuts next year. A double-whammy in fear factors. The API could still show weak stockpiles of crude and products which could bring the bulls back in the picture.

On the Natural Gas front, the market continues to trade higher and the extending heat dome will have air-conditioners working overtime and we could see a continuation rally headed into Thursday’s Natural Gas Storage number.