Déjà vu China Lowers Yuan Fix
Is this a reminder of the big selloff in oil with Greece leaving the Euro-zone, China devaluing the yuan, Saudis flooding the market so not to lose their market share and destroy U.S. frackers. Many of these events do not happen in 3 decades let alone 3 months but it did and the market rebounded. Fears of a global depression and glut of oil are way over exaggerated and as volume picks up after this week of celebrating May Day holiday we should see investors step on the accelerator after this washout the past couple of days. The cardinal rule is “fool me once”. This market is positioning to rise in historical fashion as last night’s API weekly data showed builds of only 1.2 million barrels and that was supportive to crude prices as the scared investors expected a bigger weekly build. This morning we will have the EIA weekly inventory at 9:30. Other reports at 7:30 U.S. Trade Balance and Factory Orders followed at 9:00 with the ISM Non-Manufacturing Index and Dairy Product Sales at 2:00 P.M. In the overnight electronic session the June crude oil is currently trading at 4385 which is 20 points higher. The trading range has been 4399 to 4342 so far. When cooler minds prevail the global stocks and economic picture will look brighter.
On the corn front more unseasonable weather is being realized than earlier forecasted while certain farmers are trying to catch up in the field. Farmers will be selling $4 and the grain complex will be selling any rallies at this time. In the overnight electronic session the May corn is currently trading at 373 ¼ which is 5 cents lower. The trading range has been 376 ½ to 372 ½. Let’s see how the marketplace rebounds after this new soft economic data that we knew was there all the time.