We started off the day with MBA Mortgage Market Index (08/Apr), MBA Mortgage Refinance Index (08/Apr), MBA Purchase Index (08/Apr), MBA Mortgage Applications (08/Apr) and MBA 30-Year Mortgage Rate (08/Apr) at 6:00 A.M., PPI MoM & YoY (Mar) and Core PPI MoM & YoY at 7:30 A.M., EIA Energy Stocks at 9:30 A.M., 30-Year Bond Auction at 12:00 P.M. and Dairy Products Sales at 2:00 P.M.

Photo by Waldemar Brandt on Unsplash

On the Corn Front the futures ended up higher supported by the inflationary signal the Consumer Price Index showed us. Add in weather conditions in the U.S. could start off slump in plantings as the ground may be to cold for plantings. Throw in weaker than normal South American exports with the war in Ukraine will put in a crunch of higher prices before inflation. The numbers are telling me we are headed down the wrong path at every turn. In the overnight electronic session the May corn is currently trading at 772 ¼ which is 4 cents lower. The trading range has been 775 ¼ to 769 ½.

On the Ethanol Front production is expected to be unchanged with stocks showing a slight draw. EPA could add 25-45 million bushels to the old crop grind for ethanol. There were no trades or open interest in ethanol futures.

On the Crude Oil Front the API data showed builds in crude oil of 7.757M which more than half of the build was contributed of the release of SPR’s. Again the plan did not work as we have been saying all along. Cushing showed builds of +0.375M, gasoline had draws of -5.053M and distillates -4.961M. These numbers did little to shock the war demand and exclusion of Russia from the world community. In the overnight electronic session the May crude oil is currently trading at 10214 which is 154 points higher. The trading range has been10289 to 9987.

On the Natural Gas Front the market is supported with the winter storms in the Plains and Midwest. No doubt the war premium is part of it. In the overnight electronic session the May natural Gas is currently trading aty 6.779 which is 0.099 higher. The trading range has been 6.920 to 6.652.