Good Morning!
We kickoff the week with Export Inspections at 10:00 A.M. and Export Inspections at 3:00 P.M. Sanctions and tariffs are the talk of the town with NAFTA and China fair trade negotiations going on and Venezuela voted Nicolas Madero to another six-year term and it is quite likely the U.S. will impose sanctions on Venezuela where their GDP is dependent on crude sales. On the corn front rains and cooler-than-normal temperatures in the mid-West have investors scratching their heads with the South American crop forecast and hot and dry weather forecasted in June, which leaves people to believe, “what is the trickledown effect?” In the overnight electronic session, the July corn is currently trading at 406, which is 3 ½ cents higher. The trading range has been 407 ½ to 404 ¾.
On the ethanol front we are seeing rollovers take a dominant role and volume in the July contract is outpacing the June contract. In the overnight electronic session the June contract is currently trading at 1.477, which is .013 higher. The trading range has been 1.482 to 1.477. The market is currently showing 1 bid @ 1.478 and 1 offer @ 1.482. 11 contracts changed hands and open interest is at 496 contracts.
On the crude oil front the market is trying to digest the new headlines with sanctions looming on Iran and Venezuela as OPEC production cuts firmly in place. The June contract expires tomorrow so we will see what is focused on the July contract, which is currently trading at 7167 which is 30 points higher. The trading range has been 7201 to 7132.
On the natural gas front the market is currently trading at 2.839, which is .008 of a cent lower. The trading range has been 2.847 to 2.811. The market refuses to meet cash at the moment.
Have a Great Trading Day!