Rains Make Grains
Who would’ve thunk it? April showers bring May flowers! Really? The cold and rainy May we are experiencing may help produce a healthy crop before La Nina hits if at all. Corn should miss most of the hazards in the growing season but the Soybeans will be more vulnerable. Forecasters are calling for La Nina to hit anywhere from June to July and the August months and could produce some Indian summer days in October. In the Overnight electronic session the July Corn is currently trading 392 ¾, which is 1 ¼ cent lower. The trading range has been 394 ½ to 391 ¾. Another factor in this market is investors following developments in Brazil with the impeachment and the effect it will have on the Brazilian real and U.S. dollar we could change exports.
On the Ethanol front there were no trades posted in the overnight electronic session. The June contract settled at 1.568 and is currently showing 3 bids @ 1.564 and 1 offer @ 1.577. Again this market is following the health of the Corn market and events in the Energy sector.
On the Crude Oil front the market is catching its breath after the spike of more bullish news. A bull market needs to be continuously fed and the news of OPEC countries being downgraded, wild fire damage in the Canadian Sands, rig counts continue to slide and Goldman Sachs (NYSE:GS) decides to get bullish. Well, Katy bar the door! In the overnight electronic session the June Crude Oil is currently trading at 4765 which is 7 points lower. The trading range has been 4842 to 4753 and is looking a tad heavy in the early going. Tonight we have the weekly API Energy Stocks, which should show some draws with the disruptions we have seen the past two to three weeks.
On the Natural Gas front the market does not seem to want to get below $2 in the futures market. In the overnight electronic session the June contract is currently trading at 2.059 which is 3 cents higher. The trading range has been 2.072 to 2.030 so far. This market is believing in the bulls long term, even in shoulder season.