The grains continue to ride the wave this Tuesday morning. Investors are calling for another break to the downside. However, rains that flooded the South are on the way to the Midwest, which could keep farmers off the field again, which could further add premium to the market prices. If we have flooding in the fields that would put the farmers at another disadvantage for planting reasonably on time. In the overnight electronic session, the May corn is currently trading at 383 ½, which is 2 ½ cents higher. The trading range has been 383 ½ to 380. The grain complex may hold its own in this weather market.
On the ethanol front there were no trades posted in the overnight electronic session. The May contract settled at 1.553 and is currently showing 1 bid at 1.540 and 5 offers at 1.559. This market will most definitely follow price movements in corn and energy prices in this election year, where most politicians may be quiet on the Ethanol mandate until they are re-elected.
On the crude oil front, Doha is a thing of the past, and the market is showing it. Strikes in Kuwait and flooding in Houston are going to show a disruption in the flow of oil. The May contract expires tomorrow so we change our focus to the June contract, which is currently trading at 4167, which is 48 points higher in the overnight electronic session. The trading range has been 4195 to 4088. Today and tomorrow's trading action with the API Energy Stocks released tonight and tomorrow's EIA Energy Stocks data should be pivotal to how high this market can climb.
On the natural gas front the market is showing strength again, teetering at the $2 level. The question is, can this market sustain any sort of rally with a glut of product in the market, and with rig-counts continually in subtraction mode? In the overnight electronic session the May contract is currently trading at 1.995, which is 5 ½ cents higher. The trading range has been 2.007 to 1.925.