While investors watch the Crude Oil market and try to digest every headline we have more economic reports coming out this morning starting with Housing Starts and Permits at 7:30 A.M. followed with Capacity Utilization and Industrial Production at 8:15 A.M. And at 3:30 P.M. we have the weekly API Energy Stocks, which could start a breakout from this range either way. I am still banking on the bulls. In the overnight electronic session the June Crude Oil is currently trading at 4919 which is 34 cents higher. The trading range has been 4934 to 4879. Three fundamental issues that are driving this market for now. #1 OPEC and non-OPEC agreement to extend production cuts #2 Iranian elections and #3 is a member nation of and OPEC going to default on their bonds and attempt to put as much Oil on the market. (Venezuela) The picture does not look pretty at the moment. Plenty of geo-political fear factors that could be further priced into the market.
On the Corn front U.S. plantings is seen at 68% complete. Seeing this number and seeing the fields I have seen I believe this number to be an aberration I understand large carryovers and exports moving at a record pace and this market cannot even start running with the bulls. In the overnight electronic session the July Corn is currently trading at 366 ¼, which is 1 ¼ cent lower. The trading range has been 367 ½ to 365 ¾.
On the Ethanol front there were no trades posted in the overnight electronic session. The June contract settled at 1.507 and is currently showing 1 bid @ 1.491 and 3 offers @ 1.504 with declining Open Interest estimated at 1,113 contracts. This market is watching events transpire in the Corn and Crude Oil markets.
On the Natural Gas front the market is attempting to find a bottom. And in the Energy sector are feast or famine and the looks of this anemic market shows all the signs of a raging bull market that will seek all time new highs once here is no end in sight of how low this market can get pushed and muster new lows. In the overnight electronic session the June contract is currently trading 3.324 which is 2 ½ cents lower. The trading range has been 3.369 to 3.315 and seeking new lows as I write.