We start of the morning with Chicago Fed National Activity Index (Apr) at 7:30 A.M., S&P/Case-Shiller Home price (YOY & MoM-Mar) and Home Price Index (MoM-Mar) at 8:00 A.M., Consumer Confidence and New Home Sales at 9:00 A.M., Dallas Fed Manufacturing Index at 9:30 A.M., Export Inspections at 10:00 A.M., 3 & 6-Month Bill Auction at 10:30 A.M., Fed Kashkari Speech, 2-Year Note Auction and 42-Day Bill Auction at 12:00 P.M. and Crop Progress at 3;00 P.m.
On the Corn front we are stepping out trading a notch higher early in this back to work holiday weekend. Oversold could be the word of the day with everyone on the street knows the funds are short. This spike could be short lived with news of China auctioning off their large old crop supply. It may also indicate the country is in a cash crunch with U.S.-China trade deal and politics in their hemisphere. The Chinese have decided not to release their GDP data and with the Hong Kong and Taiwanese issues only seems to suggest they have problems at home with the trade deal and the coronavirus issues. Imports and exports loom large and with excellent growing weather in the U.S. This market will see profit taking with the commercials and funds selling at every opportunity. In the overnight electronic session the July Corn is currently trading at 320 ½ which is 2 ½ cents higher. The trading range has been 320 ¾ to 316 ½.
On the Ethanol front we are seeing rollover activity from June to July contracts. The story in this market is the recovery in the Crude Oil market. Demand picking up is a welcome sign as this industry is taking baby steps to get back up on its feet. As we head into the summer driving season and demand for corn will continue to question this markets recovery, we are at least seeing promising days ahead. In the overnight electronic session the July Ethanol is currently trading at 1.108 which is 0.033 higher. The market is currently showing 1 bid @ 1.091 and 1 offer @ 1.115. The trading range has been 1.091 to 1.071 with 2 contracts traded and Open Interest at 262 contracts.
On the Crude Oil front the market is trading back in the green after profit taking was seen in Thursday and Friday’s trading session before the long Memorial Day weekend. We will be seeing demand pick up as counties are hording product at these price levels. They are looking into their crystal ball and believe these bargain-basement prices will not be here forever, which is a great sign to the global economy. In the overnight electronic session the July Crude Oil is currently trading at 3434 which is 109 points higher. The trading range has been 3454 to 3248.
On the Natural Gas front tomorrow is Last Trading Day for the June contract. Be prepared for late rollovers in today’s trading session. The fundamentals remains the same with plenty of product and slim demand in this shoulder season. The market is currently riding the wave of the Crude Oil comeback. We may see bears try and come in selling premium on the current strength. In the overnight electronic session the July contract is currently trading at 1.934 which is .053 cents higher. The trading range has been 1.947 to 1.842.