We kicked off the week with Export Inspections at 10:00 A.M., 3-Month and 6-Month Bill Auction at 10:30 A.M., 3-Year Not Auction at 12:00 P.M., Fed Williams Speech at 1:00 P.M. and Crop Progress at 3:00 P.M.

On the Corn Front the bulls took over the controls and word that China has bought more US PNW corn helped rally futures. There is also talk that 20 mmt of the Ukraine Crop will not be exported. Rain, hail and high winds moved through parts of the Corn Belt this past week, flattening crops in some fields while not causing a stir in some fields. Ken Ferrie reports most of the crops he saw withstood the high winds and in better condition than he anticipated. “Much of the hailed-on corn will be healed up in time for pollination,” says Ferrie, Farm Journal Field Agronomist and owner of Crop-Tech Consulting in Heyworth, Illinois. In the overnight electronic session the September corn is currently trading at 648 ½ which is 15 ¼ cents higher. The trading range has been 667 to 648.

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On the Ethanol Front EIA: reported that ethanol production was down 1% and stocks were up 3%. Aemetis Inc. a renewable fuels company focused on below zero carbon intensity products, on Friday announce the purchase of 24 acres known as “Parcel B,” on the Riverbank Industrial Complex site, to develop carbon capture and sequester (CCS) CO2 from other California industrial and agricultural sources,” said Eric McAfee chairman and CEO of Aemetis. There were no trades or open interest in ethanol futures.

On the Crude Oil Front sold off on more China tightening COVID-19 restrictions. The market is also has recession jitters. US supply is expected to hit 13 million barrels per day this summer for the first time since November 2019, according to Rystad Energy, refining capacity constraints have limited investment in recent years, capacity shrunk and refineries are running on full tilt to meet high demand for gasoline and other fuels. Since the Biden administration tapped the Strategic Petroleum Reserves, US crude supplies have jumped and US exports from the Gulf Coast are set to climb to record highs. In a report last month Rystad said, “ the unintended consequence of federal intervention is that more barrels than ever before are being sold to international buyers.” In the overnight electronic session the August crude oil is currently trading at 10139 which is 340 points lower. The trading range has been 10505 to 10089. Hopefully we will get a Turnaround Tuesday!

On the Natural Gas Front Europe’senergy crisis maybe worse that it looks with Russia shutting the Nord Stream pipeline. Europe fears a permanent shutdown. We also have weather factoring in with extreme heat in some parts of the country. The Biden administration is making it harder to invest in natural gas and oil and the Russian government will make considerable more revenue from oil and gas than it did before the war. In the overnight electronic session the August natural gas is currently trading at 6.676 which is 0.642 higher. The trading range has been 6.680 to 6.232.

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