The USDA Has Spoken. The Corn and Ethanol Report 08/11/17

This morning we kickoff the day with CPI and Real Earnings at 7:30 A.M. We have the Mountain Day holiday in Japan and some Asian markets are closed in observance. The Grains took a real beating after yesterday’s USDA data which was released at 11:00 A.M. The big question is was this huge break overdone? On the Corn front after yesterday’s nosedive the market is attempting to hold and gather some buoyancy. The technicals show we could have another fall to the 335 level. In the overnight electronic session the September Corn is currently trading at 357 ¾ which is a ½ of a cent higher. The trading range has been 360 ¼ to 357 ¼. The market is trying to keep its head above water and possibly we could see a short covering rally.

On the Ethanol front the September contract is currently trading at 1.559 in the overnight electronic session which is .009 of a cent higher. The trading range has been 1.560 to 1.559 with 5 contracts traded and declining Open Interest at 775 contracts.

On the Crude Oil front the market is still in denial with the Stocks getting crushed which creates fear of demand destruction. Eventually we will wake up to the fact that the world needs Crude Oil products for increasing Energy need with emerging markets such as China and India which at the moment are at each other’s throats with relations at a low point not seen since the 1960’s. This tells me demand will increase and not decline. Even with a boost of production, this will not be enough to quench the thirst for global needs. In the overnight electronic session the September Crude Oil is currently trading at 4850 which is 9 tics lower. The trading range has been 4869 to 4801.

On the Natural Gas front investors are still keeping a keen eye on Disturbance 1 even though the current storm track looks to be headed away from the Gulf of Mexico in this active hurricane season which currently could have the bulls squaring up on positions. In the overnight electronic session the September Natural Gas is currently trading at 2.975 which is 1 cent lower. The trading range has been 2.991 to 2.962.

Have a Great Trading Day!
Dan Flynn


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