We kicked off the day with MBA Mortgage Applications (11/JUN) and MBA 30-Year Mortgage Rate (11/JUN) at 6:00 A.M., Housing Starts & Permits, Import and Export Prices YoY and MoM (MAY) at 7:30 A.M., EIA Energy Stocks at 9:30 A.M., Fed Interest Rate Decision and FOMC Economic Projections at 1:00 P.M., Fed Press Conference at 1:30 P.M., and Dairy Product Sales at 2:00 P.M.

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On the Corn front, there is talk of more rain which makes more grain, I do not believe the rains will be substantial enough to cover the hot & dry weather already experienced in this crop. Also concerns about exports and other bearish headlines that are not fact, but at the moment has put the bears in charge. Yesterday’s Crop Progress showed both corn and soybeans ratings drop. The corn good to excellent rating came in at 68% versus 72% a week ago. If the heat dome expands to the Midwest, which is in some weather models, all bets are off. And any rains May forecasted will most likely dry up in the atmosphere. And we will see China not manipulating prices to buy cheap or value. They will come back to the marketplace and buy. South America’s crop is weak, and lack of global carryout will create another bubble in 2021 that we saw in 2020. In the overnight electronic session, the July Corn is currently trading at 669 ¾ which is 2 ¼ cents higher. The trading range has been 675 ½ to 663 ¾.

On the Ethanol front, the world is moving to alternative energy, so the headlines say. I am talking about the Paris accords. India has made big steps in ethanol-producing so they may achieve less carbon emissions. There is an allocation for 78,000 tons of rice to produce ethanol. This could be a boon to the U.S. market if India has weather problems and are handcuffed to meet demand. This will lead to a U.S. export market expanding. There were no trades posted in the overnight electronic session. The July contract settled at 2.460 and currently showing no market with Open Interest at 20 contracts.

On the Crude Oil front, traders will be watching the EIA Energy Stocks data. Although the products are trading weaker the market will rally as we try and keep up with summer consumption. It will be hard to sustain the impact of growing demand without production and pipelines. Thanks, Joe! In the overnight electronic session, the July crude oil is currently trading at 7220 which is 8 points higher. The trading range has been 7283 to 7212.

On the Natural Gas front, the market is taking a breather from the hot weather rally now. Unless more news headlines hit, traders will be waiting for tomorrow's EIA Gas Storage number. In the overnight electronic session, the July natural gas is currently trading at 3.203 which is .037 lower. The trading range has been 3.229 to 3.202.