God bless all the brave men and women who served and are currently serving our country so we can sleep at night and enjoy the freedoms many take for granted. God bless you heroes!
Wild storms across the plains once again should make this grain market interesting. With a possible squeeze play on in soybeans and soybean meal, with the South American crop not as good as earlier expected and the farmers down there locked in their basis.
Another contributing factor is that in the U.S. farmers are planting more soybeans ahead of corn, and if they decide to change back to corn it is too late in the growing season and the crop may not tassel. That could lead to shortages in the food chain.
Another factor is that the EPA is at it again, sneaking up to increase the Renewable Fuel Standard (RFS) mandate in 2017. They propose to add 18.8 billion gallons of biofuel, mostly ethanol, to our fuel supply. That would be harmful to engines in cars, boats, motorcycles, lawnmowers and other equipment.
The EPA regulators are at it again, messing around with our daily lives to dance to their erroneous agenda that will also hurt the food chain and our everyday uses for energy in a ridiculously bad way.
Have they not forgotten their debacle with the Animas River in Colorado, when they were trenching toxic water in an abandoned mine and mistakenly poured an estimated 1 million gallons of toxic water in the river and turned it orange? Yes folks. That’s your appointed not elected government at work for you.
In the overnight electronic session July corn is currently trading at 408 ½, which is ¼ of a cent higher. The trading range has been 409 ¼ to 406 ½. A close above $4 could bring back the bulls in a big way.
On the ethanol front you read the EPA story, so I will not get redundant. In the overnight electronic session there were no trades posted. The June contract settled at 1.643 and is currently showing 1 bid at 1.639 and 3 offers at 1.664.
On the crude oil front the market is selling off due to the U.S. dollar trading higher and light volume. I do expect a turnaround in today’s trading session because I do not believe anyone would want to carry a heavy short position going into the long weekend with the global political events in Libya, Nigeria and Venezuela.
Of course the Middle East is never stable, but in positive news the Canadian Sands are getting ready to start producing again. In the overnight electronic session July crude oil is currently trading at 4894, which is 54 points lower. The trading range has been 4947 to 4883.
On the natural gas front the market is easing off making new lows and it could be catching a falling knife buy, but when rig counts come out and we look at the hot weather forecast we could see a rally.
Another thing to consider is Janet Yellen is speaking at a Harvard luncheon today. In the overnight electronic session the July contract is currently trading at 2.104, which is .048 cents lower. The trading range has been 2.160 to 2.103.