Photo by Jesse Gardner on Unsplash

We kickoff the day with MBA 30-Year Mortgage Rate, MBA Mortgage Market Index, MBA Mortgage Refinance Index, MBA Purchase Index, and MBA Mortgage Applications at 6:00 A.M., Building Permits Prel, Building Permits MoM Prel, Housing Starts, and Housing Starts MoM Prel at 7:30 A.M., Industrial Production MoM & YoY, Manufacturing Production MoM & YoY, and Capacity Utilization at 8:15 A.M., EIA Energy Stocks at 9:30 A.M., 17-Week Bill Auction at 10:30 A.M., FOMC Minutes at 1:00 P.M., and Dairy Products Sales at 2:00 P.M.

On the Corn Front last night’s API large draw in crude oil once again pointed the finger to Captain Obvious citing undervalued agriculture prices and high energy prices equal pain buying groceries and pain at the pump. There were forecasts of draws of 3M barrels across the board. Crude came in down 6.2% barrels and distillates and gasoline were slightly mixed but this is by no means an energy boom. The Central US forecast is consistent with prior runs and viewed as threatening. High pressure Ridging expands rapidly into the principal Midwest this weekend, and a secondary bout of extreme heat impacts the entirety of the Central Plains, Midwest and Delta Sunday through Thursday. Theres a broad consensus that max temps reach into the low 100’s this weekend/early next week across the Plains and reach into mid/upper 90’s in Iowa, Minnesota, Wisconsin, Illinois and Missouri next Tuesday and Wednesday. Midwest heat is likely to fade thereafter, but there’s no indication that regular rain returns prior to August 29^th-30^th  El Nino continues to globally ride with Mother Nature. The December corn is currently trading at 478 ¼ which is 2 3/3 cents higher. The trading range has been 479 ¾ to 473 ½.

On the Ethanol Front UNICA, the Brazilian sugarcane industry association, announced that mills in the south-central region sold 2.53 billion liters of ethanol up 1?32% when compared to last year. There were no trades or open interest in ethanol futures.

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