Some traders are worried about a global slowdown in the economy on the corn front. They should worry it is happening right before our eyes. I see a huge hole that importers will be able to get the product with the void from Ukraine, South America weather, and a smaller export market.
So now we are having planting and weather problems here in the U.S. We also have runaway inflation with energy prices and fertilizer prices, to name a few. Tack on shipping cargos and other costs, and this does not paint a pretty picture.
We also have a drought forecast, to wet and La Nina storms. Regardless we will have to pick up the world market. In the overnight electronic session, the July corn is currently trading at 804 ½, which is 4 ¼ cents higher. The trading range has been 808 ½ to 800 ¼.
On the ethanol front, the battle continues after the Biden E15 announcement. All the rage is that this will save us money at the pump. We will have ethanol production and stocks later. There were no trades or open interest in ethanol futures.
We seem to be steadying the ship on the Crude oil front as we navigate the waters. We could see another break to $93 a barrel, but with the API report coming out later, we may see some cowboys back in the rodeo. Remember, headlines are moving extremely fast, and so are the hedge funds and algo funds. In the overnight electronic session, the June crude oil is currently trading at 9924, which is 70 points higher. The trading range has been 9982 to 9706.
We have the last trading day in the May contract on the natural gas front tomorrow. The market is rolling with weather and other strong fundamentals. Mr. Carbon Footprint himself, John Kerry, is talking down the future of natural gas. An Op-Ed I read this morning stated that he completely distorts the meaning and context of what the private sector is already doing. What does he do except ride the world in a private jet?
Part of a disastrous energy policy we inherited from this administration. In the overnight electronic session, the June natural gas is currently trading at 7.082, which is 0.277 higher. The trading range has been 7.175 to 6.943.