Good Morning!
Last night’s API data showed a build in crude stocks of 2.9 million barrels. This data slowed and put a bump in the road to the recent bottoming rally, which carried over to the stock market which has a keen eye on activity in this complex that has carried the economy through this recession. In the overnight electronic session the February contract is currently trading at 3693, which is 94 cents lower. The trading range has been 3740 to 3671 so far. This morning’s EIA data may not show the builds the API showed.
On the ethanol front there was activity in the February and March contracts last night. The February contract is currently trading at 1.418 which is .005 of a cent higher. The trading range has been 1.420 to 1.417. This market is slowly following in the footsteps of Crude Oil and Natural Gas prices.
Speaking of natural gas the short squeeze in the market is over with the January contract off the board and the short covering rally seemed a tad overdone the last two trading sessions with January options expiring Monday and the futures yesterday. January temperature and the EIA Gas Storage will be the driving force in this market for now.
On the corn front the market is hoping for a significant rally of some kind and the surprise spike in Grain prices has more to do with flooding and crazy weather that had the bears head to the exits. In the overnight electronic session the March Corn is currently trading at 363 ¼, which is ¾ of a cent higher. The trading range has been 364 to 362 ¼ so far. Weather in South America and El Nino here creating havoc will be a catalyst of prices of where we go from here.
Have a Great Trading Day!