Crop Progress and Weather
This morning we start are day with Wholesale Trade report at 7:30 A.M and API Energy Socks later at 3:30 P.M.
As we see more rain and cooler than average temperatures last night’s Crop Progress showed Corn 47% planted versus 61% last year and the average of 52% planted putting us below the norm as we head into tomorrow’s Crop Production USDA Supply/Demand data. With forecasts continue calling for wet and below average temperatures the next two weeks there seems to be no end in sight.
The 3 week is calling for 80 degree temperatures to follow which is much anticipated by many to start a warming trend. Investors still do not seem to be buying into late plantings in the picture with cold weather and wet fields could affect the germinating progress early. In the overnight electronic session the July Corn is currently trading at 367 ½ which is 1 ½ of a cent higher. The trading range has been 367 ¾ to 365 ¾.
On the Ethanol front there were no trades posted in the overnight electronic session. The June contract settled at 1.482 and is currently showing 1 bid @ 1.471 and 1 offer @ 1.480 with declining Open Interest at 1,989 contracts. South American tariffs on imports leave this market unhinged as the Energy, Grains and Softs seem to be dancing to that same tune.
On the Crude Oil front the market just looks like the technicals may want to push and test $45 a barrel before we jump to higher prices. At 3:30 P.M. we have the weekly API Energy Stocks with Phil Flynn Senior Market Analyst and Fox Business Channel contributor expecting draws across the board in the data with Crude Stocks down 3 million barrels, Gasoline Stocks down 200 thousand barrels, Distillates down 200 thousand barrels as well with refinery runs up1 and Cushing Oklahoma down 500 thousand barrels. A nice bullish number could take bullish investors off the sideline. In the overnight electronic session the June Crude Oil is currently trading at 4625 which is 18 points lower. The trading range has been 4678 to 4621.
On the Natural Gas front the market is regrouping after getting pounded in Monday’s trading session. The market is still pondering demand and demand destruction with last week’s storms with the wildcard of course, being exports with MAFTA and other trading deals being revisited. Investors are also wondering can this market go full throttle or just continue to stop and go. In the overnight electronic session the June Natural Gas is currently trading at 3.222 which is 5 cents higher and rallying to new highs. The trading range has been 3.224 to 3.173.