Flood Watch Getting Worse
We kickoff the day with Export Sales and Jobless Claims at 7:30 A.M. followed by EIA Gas Storage at 9:30 A.M. On the Corn front the funds still look to be favoring the short side of the market while major flooding in the Plains and Mid-West and now flood concerns in Louisiana. River stages are extremely high across the nation and the levees are at the breaking point. With all the damage that has not been figured out as of yet the longer this act of God continues the worse it will get. And we could see the funds liquidate or reverse. In the overnight electronic session the May Corn is currently trading at 372 ¾, which is 1 ¼ of a cent higher. The trading range has been 373 ½ to 370 ½.
On the Ethanol front the April contract posted a trade at 1.411, which is .003 higher. 3 contracts traded and the market is currently showing 1 bid @ 1.407 and 1 offer @ 1.411 with Open Interest dropping to 461 contracts as we see rollovers begin in earnest.
On the Crude Oil front the inventory numbers painted a picture that there is plenty of supplies and there is not a care in the world, which I beg to differ. OPEC cuts and China demand will show up as we head into the summertime driving season. The market is trading lower and the Stock Market is not adding any support at the moment. In the overnight electronic session the May Crude Oil is currently trading at 5977 which is 46 points lower. The trading range has been 6033 to 5968.
On the Natural Gas front we have the EIA Gas Storage data today and the street is looking for a withdrawal of 48 bcf. In the overnight electronic session the April Natural Gas is currently trading at 2.805, which is 1 ½ of a cent lower. The trading range has been 2.839 to 2.805.