Rains Move On But Cooler Temperatures Move In. The Corn & Ethanol Report

On the Crude Oil front prices have fallen but not peaked as traders expected more demand than we are seeing this early back in the recovery. As we are rebounding fears of a second wave of coronavirus cases in South Korea is just another case of worsening U.S.-China relations. The market is still on track for a hefty gain but expectations of how quickly momentum of demand would carry this market are starting to see roadblocks. China seems to be taking advantage of the East Asian markets that are also plagued by the coronavirus-induced recession and loading up on Nigerian crude at bargain basement prices. Also news that Gulf Keystone Petroleum LTD Gave away Crude seller of crude from their Shaiken crude produced in Northern Iraq more than $21 under Brent according to Julianne Geiger with Oilprice.com. In the overnight electronic session the July Crude Oil is currently trading at 3255 which is 116 points lower. The trading range has been 3377 to 3236.

On the Natural Gas front changing weather in the North East U.S. to colder weather in shoulder season and Turkey replacing Iran and Russian imports with U.S. imports have been the supportive sign in this day to day market that can’t catch a break. Iran’s pipeline used to carry 10 billion cubic meters of their LNG to Turkey but the pipeline has been frequently attacked since it’s inception in the early 2000’s and disruptions have a way of losing customers. Yesterday’s EIA Gas Storage showed injection builds of 109 bcf when the average guess on the street was 106 bcf. This offset any bull run but the July contract is currently trading at 1.847 which is 2 cents higher. The trading range has been 1.865 to 1.804.

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