We started off the day with Fed Bullard Speech at 7:00 A.M., Retail Sales MoM & YoY (Apr), Retail Sales Ex Autos MoM (Apr) and Retail Sales Ex Gas/Autos MoM (Apr) at 7:30 A.M., Redbook YoY (14/May) at 7:55 A.M., Industrial Production MoM & YoY (Apr), Fed Harker Speech, Manufacturing Production MoM & YoY (Apr) and Capacity Utilizationat 8:15 A.M., Business Inventories MoM (Mar) NAHB Housing Market Index (May) and Retail Inventories Ex Autos MoM (Mar) at 9:00 A.M., 52-Week Bill Auction at 10:30 A.M., Fed Chair Powell Speech at 1:00 P.M., Fed Mester Speech at 1:30 P.M., API Energy Stocks at 3:30 P.M. and Fed Evans Speech at 5:45 P.M.

Photo by Sindy Süßengut on Unsplash

On the corn Front the futures ended higher following the wheat and weather conditions for plantings. The USDA showed 49% of the crop has been planted vs. 22% last week. Keep in mind the norther Corn Belt remains wet and sloppy. USDA estimate yields of 117 matching last years record but below the USDA Outlook yield of 181. In the overnight electronic session the July corn I currently trading at 8097 ½ which is 2 cents lower. The trading range has been 808 to 797 1/4,.

On the Ethanol Front no real new headlines as Biden continues to pitch that ethanol will lower gas prices. A number of analysts agree with me that this plan will not necessarily work but a change in his energy policy would be a good start. There were notrades or open interest in ethanol futures.

On the Crude Oil Front the market is now weighing that several EU member states made it clear they will veto any proposal to ban Russian oil or gas imports. Removal of the oil ban the “fear factor” may significantly reduce premium in the crude oil prices. Lack of clear leadership from Germany makes an effective oil embargo a longshot. Stay tuned for the API Energy Stocks which could steady the fear. In the overnight electronic session the June crude oil is currently trading at 11425 which is 5 tics higher. The trading range has been 11556 to 11349.

On the Natural Gas Front production declines keep this skittish market on edge Another factor as we talked earlier about the EU not united on an energy embargo from Russia and runaway inflation. In the overnight electronic session the June natural gas is currently trading at 8.312 which is 0.356 higher. The trading range has been 8.349 to 8.015.