Good Morning!
We kickoff the day with Durable Goods at 7:30 A.M. and API Energy Stocks at 3:30 P.M. If you look at the headlines you do not hear anything except the usual political mudslinging. Which this is a bad joke and a waste of time to real news that matters with anyone with the slightest bit of intelligence. On the Grain front the funds continue to be chomping at the bit and they seem to be on the sidelines or in the stands eating popcorn as the market struggles to rally with 3 major factors taking shape. South American currencies making their product cheaper, floods in the U.S. growing areas before the crop is even planted and U.S.-China trade talks. There are traders that still believe all the headlines or lack thereof and the reality that the funds can still push this market lower. In the overnight electronic session the May Corn is currently trading at 361 ½, which is a ¼ of a cent lower. The trading range has been 363 ½ to 361. Traders are keen on selling rallies with South American producers doing the same and funds have no reason as of yet to cover their short positions.
On the Ethanol front the April contract is set to expire and we see plenty of issues with flooding hurting the new Corn crop and logistic problems moving Corn and Ethanol to the end user and not being able to satisfy the consumer. Phoenix Arizona is feeling the pain as we spoke about summertime blends and regulations for different areas in the country to match the required blend. Circle K is a convenience store chain originating in El Paso Texas, growing to surrounding South Western states to New Mexico, Arizona and Nevada. They are experiencing shortages that 1 out of 5 stores do not have fuel for the consumers and when they have value points that are expiring when there is no fuel at the pump you see a lot of disgruntled customers. The tells me this is only the first wave of Energy shortages we will be realizing in the future. In the overnight electronic session the May Ethanol is currently trading at 1.328, which is .014 lower. The trading range has been 1.345 to 1.328. 35 contracts traded and Open Interest is at 788 contracts. The market is currently showing 6 bids @ 1.301 and 1 offer @ 1.327.
On the Crude Oil front we are singing the same old song as we move into the traditional seasonable bullish trend as we switch to summertime blends. In the overnight electronic session the May Crude Oil is currently trading at 6214, which is 55 points higher. The trading range has been 6233 to 6160. The so-called Oil glut is over as we see global demand spike upwards.
On the Natural Gas front the May contract is currently trading at 2.693, which is 1 ½ of a cent lower. The trading range has been 2.722 to 2.687. The market continues to tread water and even with the bulls waiting to dance the shorts are not giving up the ship yet.
Have a Great Trading Day!