We started off the day with NFIB Business optimism Index (Jul) at 5:00 A.M., Unit Labour Cost QoQ Prel (Q2) and Nonfarm Productivity QoQ Prel (Q2) at 7:30 A.M., Redbook YoY (07/Aug) at 7:55 A.m., NY Fed Treasury Purchases 4.5 to 7 yrs. at 9:30 A.M., 52-Week and 42-Day Bill Auction at 10:30 A.M., 3-Year Note Auctionat 12:00 P.M., Fed Evans Speech at 1:30 P.M., and API Energy Stocks at 3:30 P.M.

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On the Corn front, we ended up lower in yesterday’s trading session after choppy trade. Exports are expected to be 125 million tons lower than the USDA estimate. Also, 2020/21 carryover is near 1,096 versus the USDA estimate of 1,082 million bushels. Funds are rolling longs from September to December. With all the conflicting data and light volume explains the chop and volatility. Thursday’s Crop production USDA Supply/Demand and WASDE reports is expected to show lower yields and that could be the gamechanger everyone is looking for. I also believe exports to China will pick up regardless of Covid and their weaker economy. In the overnight electronic session the December corn is currently trading at 549 ¾ which is 4 cents lower. The trading range has been 552 ¼ to 547 ½.

On the Ethanol front, the U.S. exported 81.86 million gallons of ethanol and 939.177 metric tons of distillers grains in June. The 81.86 million gallons was up from May’s 70.39 (mg) and last years 81.29 (mg). The distillers grains exported to 30 countries with Mexico the top destination followed by Vietnam and South Korea. There were no trades posted in the overnight electronic session. The September contract settled at 2.220 and is currently showing no market and zero Open Interest. Thursday’s report will include corn for ethanol use.

On the Crude Oil front, prices slid to their lowest level since May. Worries about the Delta Variant crunching global demand was the culprit. We have the API Energy Stocks today as the market is in Turnaround Tuesday mode. In the overnight electronic session the September crude oil is currently trading at 6723 which is 75 points higher. The wide trading range has been 6805 to 6656.

On the Natural Gas front, the market is gathering its legs again. More hot weather forecasted should support the market today. In the overnight electronic session the September natural gas is currently trading at 4.095 which is 3 ½ cents lower. The trading range has been 4.097 to 4.016.