Good Morning!
As we enter this new trading week weather once again is not cooperating with forecasts finally calling for spring weather. Excuse me, did I say spring weather? Or is it winter to summer. Today the Chicago area will reach highs to 52 degrees Fahrenheit and 47 degrees by Lake Michigan. Crop Progress showed good some gains but the overall progress is way behind fueling the strength in the Grain Complex. The Grains are galvanizing a long overdue rally. And when the farmer or foot soldier trying to move with an almost impossible task. The July Corn is flirting with the $400 level and if achieved could skyrocket to $500. Do not look surprised with funds still heavily short. We could witness a huge spike in prices and not be onboard to benefit from the move. In the overnight electronic session the July Corn is currently trading at 395 ¾, which is 6 ¾ cents higher. The trading range has been 396 to 392 ¾. Expect a rally in the Grain Complex we have not seen in decades.
On the Ethanol front the market is climbing with the two precious commodities it follows which would be Corn and Crude Oil with the third being Sugar but the Sugar market fundamentals are a totally different ballgame at the moment. In the overnight electronic session the June Ethanol is currently trading at 1.401, which is .021 higher. The trading range has been 1.404 to 1.398 with 21 contracts traded and Open Positions dropping to 929 positions. The market is currently showing 2 bids @ 1.401 and 5 offers @ 1.405.
On the Crude Oil front the market seems to be consolidating. However, even with the market technically looking overbought the fundamentals are speaking volumes in risk and supply concerns. In the overnight electronic session the July Crude Oil is currently trading at 6310, which is 11 tics lower. The trading range has been 6378 to 6308.
On the Natural Gas front the market is giving back the gains it achieved yesterday. No more real bullish information on this market where supply is coming out of the ground and not enough suitors to move product at this time. In the overnight electronic session the June Natural Gas is currently trading at 2.645, which is .028 lower. The trading range has been 2.668 to 2.631.
Have a Great Trading Day!