Well, its that time, hopefully all are busy, in count of our gorgeous spring. Fuel has finally cooled this week with small gains on product of about .03 cents. Today was an interesting day with diesel the only energy commodity gaining by about a cent. While yesterday it was the only dog on the DOE report, and still posted gains. I can't make heads or tails of it, but either way its fact. Crude was down .33 cents but with negative employment news and a strong dollar, losses were minimal. If I were a betting man, I would look to see a jump towards $87 dollar crude tomorrow; today's close was $85.51.
There is a lot of talk out there about an expensive fuel affair coming this summer and thus far the market has supported such rumors. Gains have come in storms, and losses when they occur, are minimal at best. The current weight of a strong dollar, higher unemployment numbers, and the boys in Greece wondering how they got in so much trouble, seems to be the only thing keeping a lid on energy. I think a couple weeks of dollar losses is all the market needs to run crude to $90, which in turn will bring $3.50 plus diesel and gas. With any luck, the rest of the commodities market will jump on board and take an up tick, but we have yet to see any strong correlation.
Good wishes planting.
Zach Winter
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