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Corn Is King

Published 03/28/2018, 12:33 AM
Updated 07/09/2023, 06:31 AM
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This morning we have Consumer Confidence at 9:00 A.M. which should be interesting with all the tariff talk and what investors expected Friday with a trade war with China seems to be averted with the U.S. holding all the cards and the good news that this administration is doing everything in its power to keep this economy rolling and is such a welcome sign as the Stock Market rally is testimony to that. We also have API Energy Stocks at 3:30 P.M. On the Corn front investors are waiting for Thursday’s Prospective Plantings and Grains Stocks at 11:00 A.M. There are several factors that if you connect the dots you want to be long. Acreage will be lower this year, the South American crop is stressed, Ethanol demand continues to rise with no end in sight, a wet spring is forecasted which could further delay plantings and funds are realizing that this market is awakening from a long slumber. In the overnight electronic session the May Corn is currently trading at 376 which is 2 cents higher. The trading range has been 376 to 373 ¾.

On the Ethanol front the May contract is in firm control of volume and Open Interest as we edge closer to the summer driving season and with a bullish Corn and Energy sector we can only expect this will fuel the Ethanol market. In the overnight electronic session the May contract is currently trading at 1.452 which is .001 higher. The trading range has been 1.455 to 1.449. The market is currently showing 5 bids @ 1.451 and 2 offers @ 1.454. 15 contracts changed hands and Open Interest is at 929 contracts.

On the Crude Oil front the market is rolling with the Saudi Oil minister stating that 7 OPEC countries are having supply fears and problems. This news put a spike in the market this morning. In the overnight electronic session the May Crude Oil is currently trading at 6622 which is 67 points higher. The trading range has been 6641 to 6549.

On the Natural Gas front the April contract expires today. The May contract is currently trading at 2.762 which is 1 ½ of a cent higher. The trading range has been 2.695 to 2.660. I believe this market is ready to seek a new bottom. Even with product moving unlike Crude Oil this market has plenty of supply coming out of the ground.

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