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Strange Weather: Natural Gas And Corn

Published 05/16/2016, 10:12 AM
Updated 07/09/2023, 06:31 AM
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Weather Market

The weather outside is frightful for May. Buildings switching heat to air conditioning are feeling the heat from complaints. No pun intended, but this type of weather will not give Natural Gas a reason to rally. Speaking of weather markets, the July Corn is currently trading at 388 ½, which is 2 ¼ cents lower in the overnight electronic session The trading range has been 390 ¾ to 386 ¼ so far. The goofy weather may not be such an impact to higher prices in Corn at the moment.

On the Ethanol front there were no trades posted in the overnight electronic session. The June contract settled at 1.544 and is currently showing 1 bid @ 1.528 and 5 offers @ 1.545.

On the Natural Gas front the market is selling off on lack of heat or weather risk for demand to peak. In the overnight electronic session the June contract is currently trading at 2.065 which is 3 cents lower. The trading range has been2.087 to 2.056.

On the Crude Oil front the market is surfing the wave as more investors are getting bullish. In the overnight electronic session the June Crude Oil is currently trading at 4726 which is 105 points higher. The trading range has been 4729 to 4615. I expect higher prices as we see the glut of oil continue to evaporate and we will wonder why production will not reach demand with continually disappearing rig counts and exploration projects given up on for financial reasons.

Have a Great Trading Day!

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