Key reversal in crude yesterday! Demand destruction at the pump! Will we see an ease in prices? Hope so! Goldman Sachs CCCP fund (crude, copper, cotton and platinum, not the hockey jerseys we saw with the Soviet Union in Olympic hockey games) hit a sell mode and the markets tanked, even the quiet metal platinum induced a huge selloff in silver. This could be good news as we brace for prices at the pump for the upcoming Memorial Day weekend and Mothers Day in May. With refineries changing to summer blends and seasonally we see a spike in prices for the changeover this is welcome news. Hopefully this is the shot in the arm the consumer needs and deserves! Let's hope this will also reverse our fortunes at the pump soon!
Let's not kid ourselves the world is a dangerous place these days with Pakistan demanding that the CIA suspend drone strikes against al-Qaeda and Taliban leaders seeking refuge in their country after killing U.S. serviceman in Afghanistan. Well your men are not pretty and they can't fight like men. Even France won't let you hide behind a burqa either you cowards!
In the overnight electronic session, May crude continued its slide, making a low of 107.87and as I write is bouncing off its lows trading at 10964 which is 28 points lower. The high has been 110.24 and we await another headline to (no pun intended) fuel this market in the next direction.
On the corn front, May corn is trading at 768¼ which is down 7¾ cents at this writing. The trading range in the overnight electronic session has been 775½ to 764½. This market had a selloff following the huge selloff we saw in other markets yesterday. In the midst of this correction I still remain bullish on this market. People have to eat and livestock needs to be fattened up to be on our grill this summer. We also look at Ethanol usage in the equation and look at carryover and this market is gold growing in the ground.
As the government shutdown looms over the budget battle, you must stay focused on current events that
are opening up before our eyes.