The Funds Step Out Again
Good Morning,
We start off the day with Housing Starts and Permits at 7:30 A.M., EIA Energy Stocks at 9:30 A.M. and Dairy Product Sales at 2:00 P.M. In the Corn market the fundamentals are telling me we are on the verge of a raging bull market but the funds are having their way shorting the market and yesterdays light volume had them step on it a little harder. Elevators and farmers are not selling at these levels while funds yawn and continue to sell in this early downward spiral. It cannot last forever in this climate and the funds will have to liquidate sooner or later. Then you throw in the Wild Card play with weather and the U.S.-China trade talks that could come in fruition at anytime we will see a disorderly exit as people heading for the exits like there is a fire in the room. In the overnight electronic session the May Corn is currently trading at 358 ½, which is a ½ of a cent lower. The trading range has been 360 to 357 ¾.
On the Ethanol front the May contract posted a trade at 1.324, which is .001 higher. 4 contracts traded and Open Interest is at 637 contracts while the market is currently showing 2 bids @ 1.316 and 2 offers @ 1.325.
On the Crude Oil front the API data came out pretty much as expected with Crude stocks down 3.096 million barrels, Cushing down 1.561 million barrels, Gasoline stocks down 3.561 million barrels and somewhat of a needed surprise of builds in Distillates of 2.330 million barrels which could be due to the fact that the farmers are behind in plantings with weather and usage of Diesel is down. In the overnight electronic session the May Crude Oil is currently trading at 6439, which is 34 points lower. The trading range has been 6461 to 6413.
On the Natural Gas front the market continues to burn lower. In the overnight electronic session the May contract is currently trading at 2.54,2 which is 2 cents lower. The trading range has been 2.582 to 2.539. The market does look heavy this morning and I anticipate more selling before the closing bell.
Have a Great Trading Day!