Good Morning!
The Crop Progress report showed we are behind last year in emerged Corn but Mother Nature and farming techniques could put the pedal to the mettle and the Corn crop will thrive. Corn conditions in Illinois, Indiana and Iowa has shown signs of life. Missouri and Nebraska seem to be undaunted by the weather we have experienced this spring. Any rally brings in farmer selling, which will further deviate the basis. A sale is a sale is. In the overnight electronic session the July Corn is currently trading at 381 which is 3 ¾ cents higher. The trading range has been 381 ¼ to 378 ¼.
On the Ethanol front the July contract posted a trade at 1.542, which is .007 of a cent higher. The market is currently showing 2 bids @ 1.542 and 1 offer @ 1.547 with Open Interest at 1,113 contracts.
On the Crude Oil front we have the weekly API inventories released today. If we have another significant draw maybe this market should wake up and have liftoff. In the overnight electronic session the July Crude Oil is currently trading at 4584, which is 24 tics lower. The trading range has been 4641 to 4577.
On the Natural Gas front we are riding the wave of sweltering heat driving air-conditioner usage up. In the overnight electronic session the July Natural Gas is currently trading at 3.059, which is 3 ½ cents higher. The trading range has been 3.065 to 3.007.
This morning we have the Producer Price Index (PPI), American Petroleum Institute (API) and the FED meeting starts today with many investors pricing in a raise in rates tomorrow.
Have a Great Trading Day!