We started off the day with Michigan Consumer Sentiment Prel (Mar), Michigan 5-Year Inflation Expectations Prel (Mar), Michigan Current Conditions Prel (Mar) and Michigan Inflation Expectations Prel (Mar) at 9:00 A.M., and Baker Hughes Oil & Total Rig Count at 12:00 P.M.
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On the Corn Front the futures ended up higher in yesterday's action. The USDA lowered wheat and corn exports estimates, with fertilizer and food security worries escalate. We should see larger trading ranges in this market, as well as U.S. corn and soy bookings, pile up as U.S. exports climb. In the last week, China secured more than 1 million tonnes of soybeans to be shipped in the 2021-22 marketing year.
An unknown buyer believed to be China in the case in the case of soybeans, notched 575,00 tonnes in gross sales. In the overnight electronic session the May corn is currently trading at 748 ¼ which is 7 ½ cents lower. The trading range has been 764 ½ to 716 ½.
On the Ethanol Front the ethanol industry is banking on carbon capture to solve the emissions problem. They also believe the energy crisis will be a boon to blends of ethanol to fuel and a larger domestic and export market. World events may have changed the latter. There were no trades or open interest in the ethanol futures.
On the Crude Oil Front the huge trading ranges and volatility continuing. I think inflation will cause famine and freezing weather and call it Global Polar Vortex. We our actually seeing the future unfold before our eyes. We should have reopened Anwar and the Keystone pipeline yesterday… if not months ago. The current administration will not admit their mistake and right the wrong by navigating this ship out of this mess. Instead we get the same old hearsay and conjecture. In the meantime the we have the market making a thousand of moves in minutes and seconds. In the overnight electronic session the April crude oil is currently trading at 10733 which is 131 points lower. The trading range has been 11025 to 10448.
On the Natural Gas Front this market is seeing some support with winter weather and an administration that playing possum with their talk about working leases are abandoned. That could not be farther from the truth. Oil companies did not abandon working land leases but the government go green policies did. The attack on oil continues like the attack on the Ukraine. The fallacy can easily be debunked as we look at $2 a gallon of gas when Biden took the helm. The blame game continues whether it’s oil companies or Putin blamed for inflation. The current administration own the woes we are seeing. In the overnight electronic session the April natural Gas is currently trading at 4.747 which is 0.116 higher. The trading range has been 4.776 to 4.622.
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