After a pullback on the grains in Tuesday’s trading session the market soared in Wednesday trading session and in the overnight this market is trading very parabolic with the charts after achieving certain resistance and investors wondering where do we go next as all investors in grains love a summertime rally. In the overnight electronic session the July corn is currently trading at 423 ¾ which is 7 ½ cents lower. The trading range has been 430 ¼ to 423 ¼. This is just a bump in the road and I expect this rally is far from over and expect new highs as we move further in a summer and La Nina weather market.
On the ethanol front the July contract is currently trading at 1.681 which is .001 of a cent lower in the overnight electronic session. The trading range has been 1.682 to 1.681 so far. The contract is also currently showing 1 bid at 1.671 and 2 offers at 1.680.
On the crude oil front the market made highs at resistance in the overnight electronic session and retreated. The July contract is currently trading at 5072 which is 51 points lower. The trading range has been 5167 to 5064 so far and is looking to make new lows. News that Iran is going to up their price on crude to China this is just another mental game we are playing after we have achieving $50 a barrel and the FED meeting next week. Call me crazy but I still anticipate $60 crude oil prices by July.
On the natural gas front this market is not backing down today. This morning we have the weekly EIA Gas Storage data and the Thomson Reuters poll of 20 analyst forecast injections numbers anywhere from 71 to 91 bcf. This is usually the time of year injections peak at around 100 bcf, but it is not likely this time as the power sector consumes record amounts of cheap gas instead of coal. In the overnight electronic session the July contract is currently trading at 2.475 which is .007 of a cent higher. The trading range has been 2.477 to 2.455 so far. Our guestimate on the Gas Storage number is an injection of 83 bcf compared to 87 bcf last week and 117 bcf last year at this time and the five year average of 96 bcf.