Ethanol to go higher as EPA lawsuit moves forward

Corn & Ethanol Report

In the overnight electronic session the May Corn ((CBOT:CK14)) is currently trading at 506 which is 2 ½ cents higher. The trading range has been 506 ½ to 502 so far. The march continues as we look at South America's crop, weather here in the United States while we are in planting season. Also pile on the Environmental Protection Agency lawsuit regarding the 2013 Ethanol Mandate will only drive market prices higher.

On the Ethanol (CBOT:ZKK14)l front the May contract is currently trading at 2.250 which is .017 of a cent lower. The trading range has been 2.265 to 2.250 in quiet trade in the futures market in the overnight action. The market is still absorbing what effect, if any, the results of the EPA lawsuit, and the Energy Information Administration numbers will have onwaits on  this market.

On the Natural Gas (NYMEX:HPK14) front the May contract is currently trading at 4.7784 which is 0.44 cents higher. The trading range has been 4.805 to 4.692 so far. This morning the Department of Energy releases its weekly Gas Storage inventory number. A poll by Thomson-Reuters showing 20 prognosticators guessing an average build of 42 billion cubic feet. Anything short of that number will be deemed wildly bullish. Buckle up your chinstrap!

On the Crude Oil (NYMEX:CLM14) front fear factor is adding premium to the market in the European and Asia theatres. Russia and the Ukraine are scaring fuel supplies in Europe while North Korea and China are not playing nice either. The sad thing is with our questionable foreign policy is leaving question marks on the faces of our allies. This is not a good agenda. In the overnight electronic session the June Crude Oil is currently trading at 10194 which are 50 points higher at this writing. The trading range has been 10226 to 10140. As we move closer to the weekend traders will be hard pressed to carry short positions with all of the geo-political conflict.

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