Soymeal led the charge to spike soybeans as funds showed interest in buying soybean oil and covering shorts on soymeal and the complex took notice. The grains are trading higher across the board in the overnight electronic session. Better weather forecasted in the coming days so farmers that need to catch up on plantings will do exactly that. The May corn is currently trading at 391 which is ¾ of a cent higher. The trading range has been 393 ½ to 389 ½. Again the market is teetering on news in South America coupled with plantings and weather here in the U.S.
On the ethanol front the May contract is expiring so our focus will shift to the June contract which is currently trading at 1.538 which is .006 of a cent higher in the overnight electronic session. The trading range has been 1.538 to 1.536 so far. The market will be following corn plantings and energy prices.
On the crude oil front the market is slipping I believe on bad Chinese Manufacturing data. There are talks again about fears of glut on the market but I believe those talks are wildly overrated as investors concerns about swimming in product will change to why are we having shortages in the very near future. This could be as soon as late in this year with rig counts continuing to decline. It will not be easy to get the infrastructure online and produce at the pace we were a year ago. Later today we will have the weekly API inventory data which could bring the bulls back to the table. In the overnight electronic session the June contract is currently trading at 4431 which is 47 points lower. The trading range has been 4535 to 4414 so far.
On the natural gas front the market is playing Turnaround Tuesday rallying in the overnight session and making new highs as I write. The June contract is currently trading at 2.082 which is 4 cents higher.
The trading range has been 2.086 which is 2.041 and is looking to make new highs before this letter goes to print. Buckle up your chinstrap it should be a wild trading session.