We kicked off the day with Export Sales, PPI MoM & YoY (Jun), Core PPI MoM & YoY (Jun), Initial Jobless Claims (09/Jul), Jobless Claims 4-Week Average (09/Jul) and Continuing Jobless Claims (02/Jul) at 7:30 A.M., EIA Natural Gas Storage at 9:30 A.M., Fed Waller Speech at 10:00 A.M., 4-Week & 8-Week Bill Auction at 10:30 A.M.

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On the Corn Front the July contract expires today. We have a lot of questions remain in the commodity sector. Another bad CPI number has suggested that the Fed will raise rates in July and possibly September. The number was the worse number since 1981, just before Ronald Reagan navigated us out of the hole. Inflation hopefully is peaking as we attempt to climb out of the abyss. Whispers that the Ukraine and Russia agreed to a deal that would open up a corridor for Ukraine exports. A key component is the Ukraine will have to demine the Black Sea and an agreement could be signed next week. The CPI number shocked the market and corn futures were able to cling to small gains. Kentucky corn farmers are facing dry conditions and can’t afford to wait for rain, they need it now. In the overnight electronic session the September corn is currently trading at 600 which is unchanged. The trading range has been 610 ¼ to 595 ½.

On the Ethanol Front production falls as supplies grow. That will be what the export and domestic market will be watching. The EIA said production averaged 1.005 million barrels a day, down 39,000 on the week and 36,00 on the year due to the July 4^th holiday and demand concerns linked to the high price of gasoline. The Renewable Fuels Association says the volume of gasoline supplied to the market fell more than 14% to a 26-week low and net inputs by ethanol refiners and blenders dropped 2% to an 11-week low. Ethanol stocks hit a five-week high at 23.606 million barrels an increase of 116,000 from last week and 2.472 from last year. There was zero activity in ethanol futures.

On the Crude Oil Front the market is watching Biden’s trip to Saudi Arabia. Nobody figures anything will be accomplished especially with Russia standing in the way. The market is trading lower after a terrible CPI number yesterday and followed up by an awful PPI number this morning. Another negative casting a pall on the stock market was JP Morgan’s earnings missed expectations. In the overnight electronic session the August crude oil is currently trading at 9521 which is 109 points lower. The trading range has been 9700 to 9324.

On the Natural Gas Front the market continues to ride the wave as countries that are shooting for 100%green are finding out the cost to farmers has gone up and crops are suffering as well as human suffering. This should lead to a strong export market and also high temperatures has this market on the move. The Thomson Reuters poll with 15 analysts participating estimates ranged from injections of 68 bcf to 80 bcf with the median increase of 74 bcf. This compares to the one-year injection of 25 bcf and the five-year injection of 60 bcf. In the overnight electronic session the August natural gas is currently trading at 6.879 which is 0.190 higher. The trading range has been6.898 to 6.582.

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