All in the Oil Patch. The Corn & Ethanol Report 05/17/17

The API weekly Energy Stocks showed builds of 882 thousand barrels with the street looking for draws of 2.2 million barrels. This bearish number could not squash the headlines earlier in the week with Saudi Arabia and Russia agreeing on extending production cuts. Also news on fracking that should give equilibrium to make up the difference which is an outrageous scenario and the VIX Index is at decades low. What is the market going to expect. Go Figure… In the overnight electronic session the June Crude Oil is currently trading at 4884 which is 18 points higher. The trading range has been 4903 to 4803.

On the Ethanol front the July contract posted a trade at 1.500 which is .001 of a cent lower. The June Ethanol contract is starting to lag in Open Interest at 1,027 contracts estimated to be open. With rollovers on the rise we will shift our focus to the July contract that has estimated Open Interest at 922 contracts and is currently showing 3 bids @ 1.495 and 1 offer @ 1.505.

On the Corn front this market and the Grain complex as a whole does not have any passionate follow-through in either direction. Conflicting data on Carryover, Exports and weather does not change the fact that every participant believes any new highs will only be sold off later and the sense of the market is Buyer Beware is emulating this market in the early going. In the overnight electronic session the July Corn is currently trading at 369 which is 1 ¼ of a cent higher. The trading range has been 369 ½ to 366 ¼.

On the Natural Gas front the market continues to reel on the news of over supply concerns like the Corn market and weather patterns that cannot sustain any rally. In the overnight electronic session the June Natural Gas is currently trading at 3.240 which is 1 cent higher. The trading range has been 3.269 to 3.210.

Have a Great Trading Day!
Dan Flynn


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