Soggy Monday
Good Morning!
More earnings today on this busy week of economic indicators. We start of the reports with Personal Income at 7:30 A.M., Export Inspections at 10:00 A.M. and Crop Progress at 3:00 P.M. We are also thinking waiver or no waiver on the Iranian sanctions as we resume trade talks with China in Beijing tomorrow. What a balance we are juggling with crazy weather making plantings near to impossible and we must consider the yields that can be realized. And if we can capture a bona-fide deal with China with the Iranian sanctions in full effect. This week may give investors the answers we have been waiting for. On the Corn front it is the same old question, will the funds ever let up and or lighten up in this fundamental bullish picture? The window of opportunity for plantings is becoming more of a fingertip catch. In the overnight electronic session the May Corn is currently trading at 355 ¼, which is 4 cents higher. The trading range has been 355 ½ to 353.
On the Ethanol front Valero’s Ethanol earnings Friday were down as operating income fell $45 million dollars versus last year’s first quarter mainly attributed by RIN prices. The quarterly report also was the first time it had addressed the Renewable Diesel segment. In the overnight electronic session the June Ethanol is currently trading at 1.348, which is .007 higher. The trading range has been 1.350 to 1.340. 10 contracts traded and Open Interest has dipped to 1,001 contracts. The market is currently showing 1 bid @ 1.348 and 2 offers @ 1.351.
On the Crude Oil front expect higher Gasoline prices with the economy rolling like a juggernaut and we have yet to see the best that has to come in fruition. Behind the scenes talks with China and OPEC to keep the pressure on Tehran and the U.S.-China meeting on trade tomorrow opening the door to a massive agreement that should send shockwaves to the global economy as well as our own. With the delicate talks in the balance will China use an Ace up their sleeve asking for waivers on Iranian Oil, which they are a large customer. To me, that is non-negotiable the Sanctions are ON! In the overnight electronic session the June Crude Oil is currently trading at 6319 which is 11 points lower. The trading range has been 6329 to 6246.
On the Natural Gas front the market cannot sustain any type of an upside rally, especially with the crazy weather that one would think would increase demand. In the overnight electronic session the June contract is currently trading at 2.575, which is a ½ of a cent lower. The trading range has been 2.589 to 2.552.
Have a Great Trading Day!