We kicked off the day with MBA Mortgage Market Index (03/Jun), MBA Mortgage Refinance Index (03/Jun), MBA Purchase Index (02/Jun), MBA Mortgage Applications (03/Jun) and MBA 30-Year Mortgage Rate (03/Jun) at 6:00 A.M., Wholesale inventories MoM (Apr) at 7:30 A.M., EIA Energy Stocks at 9:30 A.M., 10-Year Note Auction at 12:00 P.M. and Dairy Products Sales at 2:00 P.M.

Photo by Sindy Süßengut on Unsplash

On the Corn Front the market is supported by weather forecasts with the EU model was impressive and the American models not so impressive. Weatherwise traders are watching the jet stream. The new ridge has the southern plains dry with the northern plains and east Midwest wet. And traders are trying to figure out how we are going to fill the void with higher prices and freight costs. We have the Black Sea and the Ukraine unable to participate and Argentina facing a rough drought we have a row to hoe. Prices are making it next to impossible to generate revenue. And we have the Crop Production USDA Supply/Demand and WASDE number Friday. We also will have Acreage and Grain Stocks June 30^th, which will be a big number going into summer. In the overnight electronic session the July corn is currently trading at 767 ½ which is 10 ½ cents higher. The trading range has been 770 to 756.

On the Ethanol Front the highest-ever ethanol cash prices should boost interest in ethanol futures. The higher blends will affect corn prices and not so much of paying at the pump and food prices. We do face many challenges to fill a void we have not seen as if we were in unchartered waters. There were no trades or open interest in the ethanol futures with the July contract settling at 2.160.