All Eyes And Ears On China Talks
Good Morning!
We start the day with Export Sales and Jobless Claims at 7:30 A.M. followed by EIA Gas Storage at 9:30 A.M. On the Corn front the funds remain record short and the weather continues not to cooperate. We are hoping for more solid good news as the China talks resume and farmers are praying for a spike in prices in Corn because at the moment they are not close to break even. There are also concerns that the U.S. border with Mexico, which would create another revenue crisis. President Trump toned down his threat as he saw some movement on the Mexican side but his main job as commander in chief is the safety and security of U.S. citizens. In the overnight electronic session the May Corn is currently trading at 364 ¼, which is 1 ½ of a cent higher. The trading range has been 364 ½ to 362 ¾.
On the Ethanol front the May contract posted a trade at 1.310, which is .003 lower. The back months are trading higher on expectations of more shortages will come further into play. The May contract had 2 contracts trade and Open Interest dropping to 665 contracts. The market is currently showing 1 bid @ 1.307 and 1 offer @ 1.311.
On the Crude Oil front the market remains strong even after bearish inventory data. The market is vulnerable for a short-term break being overbought and possibly could consolidate with more data coming out that is not as bullish what we rolled on Monday. But in the big picture if certain headlines like the deal with China become a reality we will see an eye-popping rally. In the overnight electronic session the May Crude Oil is currently trading at 6062, which is 16 points higher. The trading range has been 6277 to 6212.
On the Natural Gas front we have the EIA Gas Storage today. The Thomson Reuters poll with 17 analysts participating have estimates ranging from a draws of 2 bcf to builds of 16 bcf with the median 10 bcf. This compares to the one-year draw of 20 bcf and the five-year average build of 15 bcf. In the overnight electronic session the May Natural Gas is currently trading at 2.667 which is 1 cent lower. The trading range has been 2.685 to 2.664. The Bears still have it and we will wait for this morning’s data at 9:30 A.M.
Have a Great Trading Day!