Beans in the Teens?
The Grain complex was under pressure early and rallied and rolled like a juggernaut and closed on the highs at day sessions close. I look for continued strength in this complex as this early we are experiencing summer winds coupled with South American crop issues and this late in the planting season what will or will not be planted. In the overnight electronic session the July Corn is currently trading at 413 ¼, which is a ½ of a cent lower. The trading range has been 415 to 412 ½. I do expect some follow through in today’s trading session.
On the Ethanol front the June contract is set to expire so we move to the July contract which is currently trading at 1.675, which is .026 cents higher in the overnight electronic session. The trading range has been 1.675 to 1.645 so far. This market will gather its legs following Corn and Crude Oil prices.
On the Crude Oil front we have an OPEC meeting today and they are possibly going to debate production quotas, which is a bullish sign if they in fact attempt to discuss quotas. We also have the weekly EIA Energy Stocks data and if you look around with the wild fires in Canada, production disruptions in Libya, Nigeria and Venezuela you would expect a bullish number if it has not already been priced in the market with the shortfall in product and the demand appetite at this time. In the overnight electronic session the July contract is currently trading at 4899, which is 2 tics lower. The trading range has been 4947 to 4872. Expect some fireworks in today’s trading session.
On the Natural Gas front we have the weekly EIA Gas Storage data this morning. The Thomson Reuters poll of 18 analyst expect injections ranging from 71 bcf to 96 bcf. The estimates are compared from last weeks injection number of 71 bcf and last years 126 bcg and the five year average of 98 bcf. These numbers do not lie and if we have as hot of a summer that is forecasted and at peak demand this market will fly. In the overnight electronic session the July contract is currently trading at 2.370 which is .011 of a cent lower. The trading range has been 2.408 to 2.361 so far/ Expect a wild trading session.