Saudi’s are talking further production cuts after yesterday’s huge drop on no news. After a mostly bullish inventory data on both the API and EIA the Energy complex could not rally and it seemed that computer algorithms kicked in and slammed the market with the expiration of the May contract. In the overnight electronic session the June contract is currently trading at 51.35, which is 50 points higher. The trading range has been 5138 to 5088.
On the Ethanol front there were no trades posted in the overnight electronic session. The May contract settled at 1.617 and is currently showing 5 bids @ 1.619 and 1 offer @ 1.634. The June contract overtook the May in Open Interest with 1,899 contracts versus 1,398 contracts.
On the Natural Gas front the market rallied on expectations of higher electricity use in this shoulder season which led to the bears lightening up short positions or liquidating. In the overnight electronic session the May contract is currently trading at 3.200 which is 1 ½ of a cent higher. The trading range has been 3.219 to 3.179. Today we have the weekly Gas Storage data and a Thomson Reuters poll of 24 analyst forecast Injection of 28 to 55 bcf which compares to the 1 year of 64 bcf and the five-year average of 57 bcf.
On the Corn front dryer weather is forecasted with cooler temperatures and that will not remedy flooded or wet fields anytime soon, which will further delay plantings. Talk of bumper crops in Argentina and Brazil are not giving any signal for this market to rally regardless of the weather and lighter plantings of the crop. In the overnight electronic session the May Corn is currently trading at 362 ¾, which is 1 cent higher. The trading range has been 363 ¾ to 361 ¼.