Energy prices have become a complete disaster in the last two trading sessions. Yesterday we saw something we’ve never seen before with crude oil futures trading negative in delivery. May crude closes out in delivery today and is trading up 33 dollars a barrel. Yesterday prices went from 17.80 in the overnight session to -40 at one point. If anyone had the ability to store crude oil they could have taken delivery, and payed you to do it. Some readers want to know if this is possible in other commodities like corn, beans or gold. These commodities are storable, and commercial banks or end users would line up to buy gold for less than its worth during delivery, same with corn or beans. Some producers have asked if this could possibly happen in corn, soybeans or other commodities. My answer to that would be NO. These commodities are storable and there would be someone lininkg up to buy and store these if they become too cheap in an attempt to use or sell them later. While crude oil may be storable, the storage capacity is limited.
Nass has reported 7% of the corn crop planted, and 2% of the bean crop. Seeding will dramatically expand this week with field conditions improving. Some of the ground is working up the best in 5 years.
Have a Safe Day!