Photo by Adrian Infernus on Unsplash

We kicked off the week with Chicago Fed Activity Index (Jul) at 7:30 A.M., Export Inspections at 10:00 A.M., 3-Month & 6-Month Bill Auction at 10:30 A.M., Cold Storage and Milk Production at 2:00 P.M., and Crop Progress at 3:00 P.M.

On the Corn Front, the Pro-Farmer Tour begins Wednesday at the Clay County Regional Event Center in Spencer, Ia. In Friday’s action the corn futures ended up higher with a wide trading range, which we have be seeing for months with wild trading ranges for months with large trading ranges in almost all of the commodities. Talk of Ukraine exports and whispers of Brazil’s exports not slowing so far in 2022 has slowed new buying. Another concern is China’s aggressive COVID-19 lockdowns. The Midwest for areas in Iowa to Ohio have seen their fair share of rain. Other parts of Iowa dry along with South Dakota Nebraska, Kansas and western Missouri. Traders will be watching to see if US export volumes increase as countries prepare for a long winter with tight energy supplies. In the overnight electronic session the December corn is currently trading at 624 which is ¾ of a cent higher. The trading range has been 624 ¾ to 615.

On the Ethanol Front, an op-ed written by Emily Skor with Ethanol Producer Magazine is looking forward to the year-round E15 and the RFS ‘set” are top priorities for Growth Energy heading into their 13^th annual DC fly-in this September. 2023 is the first year required volumes of renewable fuels are not specified by Congress and must be set by the EPA. The fly-in is set for the September 12^th-15^th and it could not arrive at a better time, it marks the end of the summertime driving season. Once again ethanol futures are stuck in drydock as the cash market continues to move.

On the Crude Oil Front, today is the Last Trading Day for the September contract. As the Biden administration is doing their happy dance and victory lap for lower prices recently, we are still paying more than 1-Year and 2-Year prices. Not much to blow your horn on. Energy traders warn prices could move higher as we head into the Labor Day Weekend which is pretty much considered the end of the summertime driving season. Diesel prices are out of control and many professions like farming and truck drivers rely on diesel. If prices continue to flow higher the administration will feel it at the mid-terms. In the overnight electronic session the October crude oil is currently trading at 8965 which is which is 79 points lower. The trading range has been 9103 to 8835.

On the Natural Gas Front The Henry Hub futures are nearing the $10 mark early as constraints on imports from Russia, domestic natural gas went soaring this morning. Surging Dutch Title Transfer Facility (TTF) prices in Europe, were driven by supply fears amid the Russian invasion of Ukraine, were putting upward pressure to Henry Hub heading into Monday. Russia’s Gazprom PJSC late last week announced plans for a three-day shutdown of flows to Europe via the Nord Stream 1 Pipeline, a move sparked renewed fears over winter shortages. This news by Jeremiah Shelor with Natural Gas Intelligence. In the overnight electronic session the September natural gas is currently trading at 9.790 which is 0.454 higher. The trading range has been 9.982 to 9.158.

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