Don't hold your breath with Ethanol

Corn and ethanol report

The rains came and the grains could not keep the gains. Soybeans (CBOT:SNN14) sold off and went negative only to bounce back and produce a chop in yesterday's open out-cry session and the Soybeans only led the complex to sell. In the overnight electronic session the July Corn (CBOT:CNN14) is currently trading at 442 which is 2 ½ cents lower. The trading range has been 444 ¾ to 440 ¾ so far. More rains forecasted can only produce further breaks to the downside in this complex this week.

On the Ethanol (CBOT:ZKN14) front there were no trades posted in the overnight electronic session. The July Ethanol settled at 2.070 and is showing 1 bid@ 2.048 and 1offer at 2.096 which seems to be quite a wide spread for 1 trade. This is one trade you don't hold your breath on if you're trying to slowly position yourself in the market.

On the crude oil (NYMEX:CLN14) front the market seems to be tiring of the focus on headlines out of Iraq. Tonight we have the Weekly API inventory data which could take the focus off the Middle-East risk premium for a day or two or push the focus farther and create  an extremely bullish risk premium market. In the overnight electronic session the August crude oil (NYMEX:CLQ14) is currently trading at 10625 which is 8 points higher. The trading range has been 10627 to 10525 so far. We will continue to watch the news unfold in Iraq to figure out what direction we are headed next.

On the Natural Gas (NYMEX:NGN14) front the market is bouncing back in the overnight session as the corrective sell off continued in yesterday's trading session. In the overnight electronic session the July contract is currently trading at 4.483 which is 0.037 cents higher. The trading range has been 4.483 to 4.431 so far. I remain bullish once again and expect another drive to higher prices soon.

About the Author

Market Analyst at The PRICE Futures Group

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