Corn Rallies – What Happened
The grain complex has been completely under pressure and the old adage of rain makes grain and the thoughts of this rainy storms across the South, Plains and Mid-West will keep the farmers out of the fields. But guess what. The beautiful weather we have experienced the last couple of days had farmers in the field and I do anticipate even if we have late plantings we will match the record crops South America is producing.
Investors are scratching their heads of what can move this market higher in the 2017 planting season. When farmers are a victim of their own success and we cannot even buy a rally which makes farmers and investors hard pressed to be a raging bull. In the overnight electronic session the July corn is currently trading at 372 ¼ which is a ½ of a cent higher. The trading range has been 374 ¼ to 371 ½.
On the Ethanol front there were no trades posted in the overnight electronic session. The June contract settled at 1.614 and is currently showing 2 bids at 1.609 and 1 offer at 1.621 with Open Interest at 3,034 contracts.
On the Crude Oil front the weekly API Energy Stocks showed builds in crude oil supplies of 897 thousand barrels which kept pressure on any soon to be expected rally. This morning we will have the EIA Energy Stocks which investors will be closely monitoring looking for any bullish variation in the data. In the overnight electronic session the June crude oil is currently trading at 4920 which is 36 points lower. The trading range has been 4958 to 4916.
On the Natural Gas front the May contract expires today and the complex is trading higher at the moment. In the overnight electronic session the June contract is currently trading at 3.210 which is 4 ½ cents higher. The trading range has been 3.218 to 3.159.