We started the day with Export Sales, Initial Jobless Claims (15/AUG), Jobless Claims 4-Week Average (15/AUG), Continuing Jobless Claims (08/AUG), and Philadelphia Manufacturing Index at 7:30 A.M., CB Leading Index MoM (JUL), EIA Gas Storage at 9:30 A.M., 4-Week and 8-Week Bill Auction at 10:30 A.M., Fed Daily Speech and 30-Tera TIPS Auction at 12:00 P.M.

On the Corn Front John Perkins with Brownfield Ag News For America reports the USDA will resurvey Iowa corn and soybean crops. The storm damaged several million acres of cropland in Iowa alone with the good to excellent rating dropping 10% on corn and 8% on soybeans. Iowa is the biggest corn producer in the U.S. and the second leading producer of soybeans, with combined harvested area for both crops currently projected at 22.87 million acres. If the resurvey warrants changes, the adjusted estimates will be in the September 11^th production update. We will also have independent crop tours that may share more information of the severity of the damage. In the overnight electronic session the December corn is currently trading at 337 ½ which is 2 ¼ cents lower. The trading range has been 340 ¾ to 335 ½.

On the Ethanol front the EIA released data that ethanol production was up 1% the week ending August 14 and weekly ending fuel stocks were up 3%. U.S. ethanol production averaged 926,000 barrels per day versus 918,000 barrels per day last week Ethanol production showed a low of 537,000 barrels per day the week ending April 24^th. Production has trended upward in May and June as travel restrictions associated with the pandemic began to ease and fuel demand increased. Production levels since July stabilized to 900,000 to 950,000 barrels per day, down about 10% from last year. There were no trades posted in the overnight electronic session. The September contract settled at 1.310 and is currently showing no bids and 1 offer @ 1.320 with Open Interest at 63 contracts.

On the Crude Oil front we saw draws again in yesterday’s EIA report but demand issues do not seem to be a problem in traders eyes for the moment. OPEC+ has cut exports and production has dropped to a three decade low according to Lloyd's List Intelligence. We most likely will not see oil exporting countries ramping up production and oil exports until the market sees more balance since the Russia Saudi Arabia oil price war. Remember the September contract expires today. In the overnight electronic session the October crude oil is currently trading at 4267 which is 44 points lower. The trading range has been 4298 to 4260.

On the Natural Gas front we have the EIA Gas Storage number today and Reuters polled 17 analysts whose estimates ranged from 33bcf to 53bcf with the median 44bcf. This compares to the one-year injection of 60bcf and the five-year average of 49bcf. Other news reported by the Middle East Eye that Turkey made a natural gas discovery in the Black Sea. President Recep Tayyip Erdogan said he will make an announcement on Friday that will usher in “a new era” for the country. In the overnight electronic session the September natural gas is currently trading at 2.415 which is .011 lower. The trading range has been 2.440 to 2.396.