Photo by Sindy Süßengut on Unsplash

We kickoff the day with Export Sales, Initial Jobless Claims (04/Jun), Jobless Claims 4-week Average  (04/Jun) and Continuing Jobless Claims (28/May) at 7:30 A.M., EIA Natural Gas Storage at 9:30 A.M., 4-week & 8-Week Bill Auction at 10;30 A.M., and 30-Year Bond Auction at 12:00 P.M.

On the Corn Front we settled higher in yesterday’s action on domestic basis and glaring demand on exports. We are also having an economy that is snowballing out of control. There are prognosticators warning of rolling blackouts in the Midwest which won’t make prices lower. Also in California they putting a law into effect rationing water. We have aircraft carriers that can turn salt water into fresh drinking water. I think the state should be investing in that because they are right by the ocean, instead of investing in high-speed rail. Tomorrow is Crop Production USDA Supply/Demand and WASDE data and at month’s end we will have Grain Stocks and Planted acreage. In the overnight electronic session the July corn is currently trading at 763 which is 1 ½ of a cent lower. The trading range has been 766 ½ to 758.

On the Ethanol Front after a big victory for the corn lobby for more ethanol to gasoline blends another story making the rounds for years is the alcoholic base of ethanol is dangerous for some cars and could cause mechanical issues. E15 does not get as good of mileage than E10 says Tayler Freyberg, vice president of Freyberg Petroleum. “It doesn’t save you any money, but you will be filling up more often because efficiency goes down,” Freyberg was quoted. And what does government say, get an electric car. In this economy I would rather have an electric guitar. There were no trades or open interest in ethanol futures with the July contract settling at 2.160.

On the Crude Oil Front we are lower for the moment but products are flying out of sight to the upside which is bad for diesel, aircraft and more pain at the pump. In the overnight electronic session the July crude oil is currently trading at 12117 which is 94 points lower. The trading range has been 12272 to 12079. $121 to $122 a barrel isn’t going to cut it and the market is yet to peak. The top is not in.

On the Natural Gas Front the market is finally trading lower with a long liquidation. We are in for a deadly heatwave next week and must have concerns about the power grid. We have the Natural Gas Storage today and the Thomson Reuters poll with 14 analysts polled whose estimates range from 80 bcf tp 94 bcf, with a mean increase of 90 bcf. This compares to the one-year injection of 28 bcf and the five-year average  injection of 79 bcf. We will get more news and damage assessments on the explosion and fire at the massive Freeport LNG liquefied natural gas plant on the Texas Gulf Coast, prompting an evacuation of nearby residents of Quintana, Texas. In the overnight electronic session the July natural gas is currently trading at 8.189 which is 0.510 lower. The trading range has been 8.715 to 8.016.

Have A Great Trading Day!