Grains Trading in Frenzy Mode
After the funds puked out of their heavy short positions in the US dollar versus the Brazilian real, weather patterns in the US and South America are having the grains trade in Sybil mode. The talks of pros and cons if we are going to experience La Nina also have investors scrambling to take profits early. In the overnight electronic session, May corn is currently trading at 379, which is 2 cents higher. The trading range has been 379 ½ to 375 ¼ so far. I expect a chop in today’s action.
On the ethanol front there were no trades posted in the overnight electronic session. The May contract settled at 1.536 and is currently showing a wide spread, with 1 bid at 1.531 and 2 offers at 1.551.
On the natural gas front the May contract is expiring tomorrow, so you would want to roll into deferred months or liquidate. In the overnight electronic session the June contract is currently trading at 2.160, which is 2 ½ cents lower. The trading range has been 2.208 to 2.155.
On the crude oil front the market is showing strength in the overnight electronic session, with the June contract currently trading at 43.07, which is 43 points higher. The trading range has been 43.27 to 42.50 so far. The Fed meets today and tomorrow, and I do not expect to see an interest rate hike, but the talk may be hawkish for a hike in June.