Bullish API Data Moves Crude Oil
The API data showed bullish data on Crude oil, Distillates and a bearish number on Gasoline and the market took notice. Also bullish, Royal Dutch Shell (LON:RDSa) announced it will lay off another 2,200 employees. This is a sign that the big-oil companies are still hurting at these price levels and will produce less and demand increasing only means more pain at the pump this summer. Now if the FED governors could only get on the same page instead of rattling the investors that trade the markets we may see more continuity. In the overnight electronic session the July Crude Oil is currently trading at 4921, which is 59 points higher. The trading range has been 4945 to 4903. This morning we will have the EIA data at 9:30 A.M. and if it matches the API, we should test $50 a barrel.
On the Corn front, the market is trading weather again with cooler temperatures in Argentina and rains forecasted across the Plains and Mid-West may hamper the Corn crop this early and farmers seem to be ditching Corn in favor of Soybeans to sell volume. In the overnight electronic session the July Corn is currently trading at 399, which is 1 ½ of a cent higher. The trading range has been 399 ¾ to 395 ¾.
The Ethanol mandate seems to be on the back burner at the moment in this election year.
On the Ethanol front there were no trades posted in the overnight electronic session. The June contract settled at 1.523 and is currently showing 2 bids @ 1.614 and 1 offer @ 1.661.
On the Natural Gas front the June contract is headed into expiration so you should roll positions to July, August or September. If we do get a dose of hot, muggy weather for some time -- along with and Friday’s rig count -- expect this market to rally. In the overnight electronic session the July contract is currently at 2.160, which is up .014 of a cent. The trading range has been 2.162 to 2.136 and is looking to seek new highs at the moment.