We start off the day with Business Inventories, Retail Sales MoM (APR), Retail Sales Ex Autos MoM (APR), Export Prices YoY & MoM (APR), Import Prices YoY & MoM (APR) and Retail Sales at 7:30 A.M., Industrial Production YoY & MoM (APR) and Capacity Utilization (APR) at 8:15 A.M., Business Inventories MoM (MAR), Michigan Consumer Sentiment Prel (MAY), Michigan Inflation Expectations Prel (MAY), Michigan 5-Year Inflation Expectations Prel (MAY) at 9:00 A.M., Baker Hughes Oil & Total Rig Count at 12:00 P.M., and Consumer Credit at 2:00 P.M.

image source

On the Corn front, the futures trade sharply lower with limit down moves as the USDA did not raise the 2021/22 corn demand, the concerns of the bridge over Memphis halting navigation down the Mighty Mississippi so corn barges cannot reach the Gulf to load Chinese corn vessels. Tugboats could be employed to assist barges as they go under the bridge, so barges are not bumping into the bridge. Estimates that 80% of barge traffic in the bottleneck are transporting corn. Other fears were Midwest weather concerns with frost earlier in the week and the Drought Index growing across and there was no help with the U.S. dollar rising making commodities more expensive. The dollar is trading lower in the overnight. I believe we have seen a bottom and hope not to see any more bearish surprises. In the overnight electronic session, the July corn is currently trading at 681 ¾ which is 7 cents higher. The trading range has been 687 to 666.

On the Ethanol front, the U.K. Department for Transport released draft legislation to implement the planned adoption of E10 going back to February. This is a sign of more exports to Europe and Asian exports are growing as well. We may see a lesser degree as India still is fending off their Covid crisis. There were no trades posted in the overnight electronic session. The June ethanol settled at 2.340 and is currently showing no market with Open Interest at 21 contracts.

On the Crude Oil front, what a difference a day makes. Unconfirmed whispers have said that Colonial Pipeline did pay the ransom but again that is not confirmed. It will most like it will take a couple of weeks to get back to normal, but with Memorial Day fast approaching, the official start of the summertime driving season we will see prices go up and up this summer. Now that Pandora’s Box has been opened the administration eyes have opened to the importance of pipelines. Not only safer to transport fuels effectively and good for the environment to name a couple. Gas Stations on the East Coast will be rebooting soon and have the pumps ready to fill vehicles again shortly. This again shows this is a National Security issue for the economy and environment. In the overnight electronic session, the June crude oil is currently trading at 6487 which is 75 points higher. The trading range has been 6458 to 6333.

On the Natural Gas front, concerns for pipelines is a big issue as well. Yesterday’s EIA report showed less natural gas-fired electricity generation this summer. While the Drought Monitor and forecasters paints a different picture. Nonetheless, we should start trading higher in this market as well. If the EIA is wrong and domestic usage screams and exports keep purging higher, this market is poised for a boon. In the overnight electronic session, the June natural gas is currently trading at 2.991 which is .018 higher. The trading range has 2.997 to 2.966.