Good Morning!
Let’s get started! The Fed decision on rates is today and could create more volatility, with the VIX index at a 10-year low. We also have the ISM Non-Manufacturing index at 9:00 A.M. EIA Energy Stocks at 9:30 A.M. Dairy Product Sales at 2:00 P.M. Apple (NASDAQ:AAPL) earnings were better than the street expected but did not give NASDAQ investors a fuzzy feeling. We also had a bullish API Energy Stocks data that should propel prices but with the recent weather ravaging the South, Mid-West and Plains, which demand destruction also comes into play.
On the Corn front the grain complex just cannot seem to have any follow-through rally even though we had a visual of planting delays it just seems that any rally will be sold. The monthly USDA Supply/Demand number is next Wednesday and will factor in South America’s harvest numbers versus the stress on our crops and the weather we realized this weekend. As the rain clouds move out we still have below normal temperatures which is not a positive sign in growing season when you have flooded and wet fields. So much for global warming. In the overnight electronic session the July Corn is currently trading at 370 ½, which is 1 ½ of a cent lower. The trading range has been 373 to 370.
On the Ethanol front the June contract is currently trading at 1.521, which is .017 of a cent lower. The trading range has been 1.523 to 1.521 and the market is currently showing 1 bid @ 1.521 and 1 offer @ 1.529 with declining open interest at 2,819 contracts.
On the Crude Oil front more fake news of bearish headlines. Whether it be fracking news, OPEC Non-OPEC compliance to production and the different factions in Libya agreed to share power. The weekly API data showed a bullish drop of 4.2 million barrels and the market s still waiting for the next headline which could happen at 9:30 A.M when the EIA releases its weekly inventory data. Demand destruction is the only possible reason for this market not to rally with OPEC news and fracking able to meet demand is key. It will be short-lived. In the overnight electronic session the June Crude Oil is currently trading at 4793, which is 27 points higher. The trading range has been 4823 to 4775.
On the Natural Gas front the market is trading a see-saw motion but not currently reaching support to give technical analysis traders to create more reasons to create more buyers. In the overnight electronic session the June Natural Gas is currently trading at 3.205, which is 1 cent higher. The trading range has been 3.210 to 3.178. The market is still assessing this weekend storms destruction versus demand destruction and exports building.
Have a Great Trading Day