Photo by Adrian Infernus on Unsplash

We start off the day with MBA Mortgage Index (20/May), MBA Mortgage Refinance Index (20/May), MBA Purchase Index (20/May), MBA Mortgage Applications (20/May), and MBA 30-Year Mortgage Rate (20/May) at 6:00 A.M., Durable Goods MoM (Apr), Durable Goods Orders Ex Transportation MoM (Apr), Durable Goods Orders Ex Air (Apr), Non-Defense Goods Orders Ex Air (Apr) and Durable Goods Orders ex Defense MoM (Apr), EIA Energy Stocks at 9:30 A.M., 2-Year FRN Auction at 10:30 A.M., Fed Brainard Speech at 11:15 A.M., 5-Year Note Auction at 12:00 P.M., FOMC Minutes at 1:00 P.M. and Dairy Products Sales at 2:00 P.M.

On the Corn Front, the market is in dive mode with China promoting corn imports from Brazil. At the same time, it was rumored that China’s state-owned enterprise bought around  250,000 to 400,000 mt. of corn for September/October shipment, and more volumes were hood booking in recent days, a trading source told Agricensus. China had claimed corn obtained the quarantine qualifications for exports. A very wet day ahead with severe storms in parts of the Corn Belt but we should dry out quickly with temperatures reaching the 80s and 90s. Iowa, Illinois, and Indiana are the three I’s lead in planting percentages with Illinois leading the pack with 78% planted right on the 5-Year Average. In the overnight electronic session, the July corn is currently trading at 758 ¼ which is 13 ½ cents lower. The trading range has been 772 to  755.

On the Ethanol Front, The Minnesota Utilities Commission unanimously voted that the organization has the existing authority to permit the siting of carbon dioxide pipelines, including the two multi-state pipelines under development that will sequester CO2 from numerous ethanol plants. There is broad-based support for PUC oversight of carbon pipelines from a variety of commenters, tribal governments, labor unions, environmental groups, and citizens. There was no activity in ethanol futures.

On the Crude Oil Front, last might’s API Energy Stocks came out with builds in the crude oil of +0.567M, withdraws in Cushing of 0.731M, and products following suit with gasoline down 4.223M and distillates 0.949M Not the greatest news for Memorial Day traffic. As that is the official summer driving season open. In the overnight electronic session, the July crude oil is currently trading at 11109 which is 132 points higher. The trading range has been 11168 to 11014.

On the Natural Gas Front, the market is making quite the comeback. Last Trading Day is tomorrow for the June contract and we also have the EIA Gas Storage which I will have estimates in tomorrow's report. The market is seeing the forecasts of the mercury rising to the 80s and 90s in certain parts of the Midwest and expecting air-conditioning use to climb and they will have to keep the power grid going. In the overnight electronic session, the July natural gas is currently trading at 9.212 which is 0.376 higher. The trading range has been 9.283 to 8.798.