Earnings Excellent Investors Eye Boeings Before Open
Good Morning!
Boeing's (NYSE:BA) earnings before the bell has a lot of analysts thinking that until the investigation is over and the planes are either grounded or no longer grounded will be the time to worry but not in the 1st Quarter earnings. Besides more earnings and I just saw Caterpillar (NYSE:CAT) beat estimates, we have EIA Energy Stocks at 9:30 A.m. and Dairy Product Sales at 2:00 P.M. On the Corn front the funds keep piling on shorts as we traded to new lows in yesterday's trading session. Plantings are significantly behind but most traders believe that most of the crop will get planted but what type of acreage and growing conditions will produce a large crop again. There is also caution of a slow starting El Nino that could raise a double whammy give us intense heat at the wrong time. One thing is for sure traders and farmers alike will be watching the American and European weather models. In the overnight electronic session the May Corn is currently trading at 351 ¾, which is a ½ of a cent higher. The trading range has been 352 ¼ to 351.
On the Ethanol front the Corn news is more bad news for Ethanol Producers as the cheap price keep Corn prices low and Ethanol Producers are forced to limit their elevator stocks, which is making Gasoline shortages in some parts of the country even tighter while their profit revenue shrinks with this ungodly weather. In the overnight electronic session the June Ethanol is currently trading at 1.336, which is .005 lower. The trading range has been 1.350 to 1.336 with 6 contracts traded and Open Interest climbing to 1,016 contracts. The market is currently showing 1 bid @ 1.343 and 1 offer @ 1.360.
On the Crude Oil front the market seems to be in a little pause as the API showed builds of 6.86 million barrels while the street was expecting a much lighter build of 500 thousand barrels. Products were mostly in line with expectations. In the overnight electronic session the June Crude Oil is currently trading at 6619, which is 11 points lower. The trading range has been 6624 to 6577. EIA Energy Stocks will confirm the large builds or not on the number at 9:30 A.M.
On the Natural Gas front I saw some profit taking on a slight spike in prices. The May Natural Gas is currently trading at 2.480, which is 2 ½ cents higher. The trading range has been 2.487 to 2.450. I still see the market heavily short and Producers are not doing back flips over the prices.
Have a Great Trading Day!