Good Morning!
Even with exports at a great pace and weather not cooperating in this early part of the planting season, investors believe we will see record crops and the futures markets are showing it. Argentina and Brazil’s record crops are painting a gloomy picture to prices for farmers regardless of the movement of exports. In the overnight electronic session the July corn is currently trading at 364 ¼, which is 1 ¼ of a cent lower. The trading range has been 365 ¾ to 363. Remember, Friday is First Notice Day on May Grains and rollovers will be plentiful.
On the Ethanol front there were no trades posted in the overnight electronic session. The June contract settled at 1.605 and is currently showing 1 bid @ 1.591 and 1 offer at 1.605 with climbing Open Interest at 2,806 contracts.
On the Crude Oil front I believe this market is way oversold. We will wake up to reality one day when this market gaps higher in a big way. But for now we are trading in a sideways to lower range. In the overnight electronic session the June Crude Oil is currently trading at 4928, which is 5 points higher. The trading range has been 4955 to 4915.
On the Natural Gas front the May contract expires on Thursday so we will shift our focus to the June contract which is currently trading at 3.158, which is .002 of a cent lower. The trading range has been 3.171 to 3.147. Exports are at historical levels but like other commodity markets this market needs a headline or weather to get some passion back in place to drive it higher.
Have a Great Trading Day