China Sends Olive Branch
Good Morning!
We kickoff the day with Export Sales and Jobless Claims at 7:30 A.M., Existing Home Sales at 9:00 A.M. and EIA Gas Storage at 9:30 A.M. Thomson Reuters reportsthat China will import record volumes of U.S. Crude Oil and Soybeans. Giants like Sinopec will import Crude Oil and Sinograin will be back buying after a six week hiatus and Cofco will be permitted to buy Soybeans as well. This will not have a major impact on Corn unless if China’s sticks to their guns on Ethanol front and imports of Ethanol could be a trump card. In the overnight electronic session the July Corn is currently trading at 411, which is 2 ½ cents higher. The trading range has been 412 ¼ to 408.
On the Ethanol front the June contract is currently trading at 1.510, which is .006 higher. The trading range has been 1.510 to 1.509. 11 contracts traded and Open Interest is declining to 307 contracts. The market is currently showing 3 bids @ 1.505 and 1 offer @ 1.519.
On the Crude Oil front the market is still reeling from the wildly bearish Crude data on yesterday’s EIA Energy Stocks. The negative numbers did not add up even throwing in the data from the Strategic Petroleum Reserve (SPR). It was still enough to spook investors while trying to figure where this big build came from. In the overnight electronic session the July Crude Oil is currently trading at 7092, which is 92 points lower. The trading range has been 7200 to 7086. We still could get a Memorial Day pop heading into the long weekend.
On the Natural Gas front we have the weekly EIA Gas Storage data today. The Thomson Reuters weekly poll with 19 analysts participating estimate injection builds anywhere from 85 bcf to 121 bcf with the median build of 92 bcf. This compares to the one-year build of 80 bcf and the five-year average of 97 bcf. In the overnight electronic session the June contract is currently trading at 2.912, which is .002 of a cent lower. The trading range has been 2.928 to 2.905.
Have a Great Trading Day!