More Earnings And Reports Today
Good Morning!
We kickoff the day with March ADP report at 7:15 A.M., U.S. Trade Balance at 7;30 A.M., Factory Orders and ISM Non-Manufacturing Index at 9:00 A.M. followed by EIA Energy Stocks at 9:30 A.M. A China delegation is in Washington and whispers that we are setting the stage for a new trade deal this month. Funds remain heavily short and Farmers can’t sell to cover cost to grow the crop and will not be selling at these levels. In the overnight electronic session the May Corn is currently trading at 364 ½, which is 3 cents higher. The trading range has been 364 ¾ to 361 ¼. If a deal is reached we can expect a rise in exports in Corn, Ethanol, Hogs and Soybeans just for starters and with the funds at record shorts could spark a short covering rally that would make traders heads spin.
On the Ethanol front the past year has been rough on Ethanol producers with the Corn-based fuel supply at record highs and China tariffs not helping the big picture. Ethanol plants in Nebraska, Iowa and South Dakota forced to close down due to flooding and these three states makeup a sixth of U.S. Ethanol production. Speaking with Ryan Randazzo reporter with the Arizona Republic reported that the Phoenix and Tucson areas with different specific blends of fuel and Ethanol because of a larger population versus rural areas are further creating shortages. Mick Henderson who runs the Commonwealth Agri-Energy Ethanol plant in western Kentucky said the past year has been rough on Ethanol producers and this has been of their weakest years. He does expect a short-term boost in profits because they will be making up for lost supply. Henderson went o to say, “if I was losing ten cents a gallon, I would be breaking even”. Liam Niemeyer at the Ohio Valley ReSource contributed to this story. The April Ethanol expires today and in the overnight electronic session the May contract is currently trading at 1.340, which is .008 higher. The trading range has been 1.340 to 1.337. 15 contracts traded and Open Interest is at 745 contracts. The market is currently showing 5 bids@ 1.338 and 2 offers @ 1.342.
On the Crude Oil front the market is currently holding it’s own after a bearish API Energy Stocks number last night, which showed builds of 3 million barrels in Crude, builds in Cushing, Oklahoma of 18 thousand barrels and draws in Distillates of 1.9 million barrels and Gasoline had draws of 2.6 million barrels. In the overnight electronic session the May Crude Oil is currently trading at 6268, which is 10 points higher. The trading range has been 6299 to 6238.
On the Natural Gas front the May contract is currently trading at 2.669, which is 1 ½ of a cent lower. The trading range has been 2.697 to 2.665. Bears continue to hold on to their shorts for now.
Have a Great Trading Day!