We start off the day with NIFB Business Optimism Index (MAY) at 5:00 A.M., U.S. Trade Balance (APR), Exports and Imports (APR) at 7:`30 A.M., Redbook at 7:55 A.M., JOLT’S Jobs Openings (APR) at 9:00 A.M., N.Y. Fed Treasury Purchases TIPS 1 to 7.5 Years and 42-Day Bill Auction at 10:30 A.M., 3-Year Note Auction at 12:00 P.M., and API Energy Stocks at 3:30 P.M.

On the Corn Front the early heat wave and rains this week have farmers believing that this crop will grow. How long the hot temperatures last with lack of rain will continue to have the bears & the bulls continue to battle. Yesterday’s Export Inspections exceeded the pace since last year. Weather continues to drive this market both home and abroad. Thursday’s USDA Supply/Demand report may ‘Wake Up the Echoes,” as we look at Export Sales on Thursday as well. We are most definitely in an export and weather market at the moment and in the overnight electronic session the July corn is currently trading at 687 ½ which is 8 ¼ cents higher. The trading range has been 690 ½ to 680 ¼.

On the Ethanol Front this market continues to play the card it has been dealt. The only obvious news is grain stocks going to feed lots while the price is a bargain this early in the barbeque season. And at the moment there is no bargain until Mother Nature, prospects for an agreement with the EPA which will make this market along with U.S. Exports. We must remember that not only does this market add to fuel it also can be used for hand sanitizers and other commodities that have not come to mind to the consumer. Before the pandemic, “Who Knew.” A definite wake up call. There were no trades posted in the overnight electronic session. The July contract settled at 2.460 and is currently showing no market with Open Interest at 20 contracts.

On the Crude Oil front the market achieved $70 a barrel and backed off once again at this benchmark. We should see higher prices before or after today’s API Energy Stocks and may lead to more buying before it is too late. In the overnight electronic session, the July crude oil is currently trading at 6869 which is 64 points lower. The trading range has been 6930 to 6847.

On the Natural Gas Front, the market is again pushing higher on the forecasts of hot & dry weather. If the weather models stay the same, we will see air-conditioning units on the rise and cash and futures prices rise on the power grid, hopefully not run-on wind, or solar power.  In the overnight electronic session, the July natural gas is currently trading at 3.125 which is .055 cents higher. The trading range has been 3.135 to 3.092.

HAVE A Great Trading Day!
Dan Flynn