Happy Ground Hogs Day!
Good Morning!
It does feel like the 1993 Ground Hog Day movie as we are taking heat in the market early once again as prices tumble. Just as long as my alarm clock will not play 'I Got You Babe!' News the BP (N:BP) had an annual 5.2 billion loss. Anadarko (N:APC) loss is widening as revenue falls 35% and Royal Dutch Shell (N:RDSa) is to sell 51% of their stake in the Malaysian refinery business while S&P lowers Shell’s rating and other oil majors are on watch. On Thursday, Royal Dutch Shell plc is set to release fourth quarter 2015 earnings before the bell. The markets are trading on sheer fear. How long will we have cheap gas prices? Unfortunately, this was not a uniformed way to go, which may create another bullish super-cycle. In the overnight electronic session the March Crude Oil is currently trading at 3085 which is 77 points lower. The trading range has been 3153 to 3039 so far. We may see a slightly bullish API Energy Stocks number due to the blizzard in the Northeastern U.S.
On the Natural Gas front the market is trading heavy as well. In the overnight electronic session the March contract is currently trading at 2.065, which is .087 cents lower. The trading range has been 2.140 to 2.061 so far. The March contract could test the 2.015 level.
On the Ethanol front there were no trades posted in the overnight session. The March contract settled at 1.432 and is showing 1 bid @ 1.425 and 1 offer @ 1.431. Just following the weakness in Energy, Corn and Sugar prices.
On the Corn front we are trading weather. Next Tuesday we will have Crop Production USDA Supply/Demand that may give the Grain complex a pulse or maybe even a heartbeat. All the negatives about exports and a cash market slowly picking up but not by design at these prices will have us looking ahead to the March 31 Prospective Plantings. In the overnight session the March Corn is currently trading at 370 ½, which is ¾ of a cent lower. The trading range has been 373 to 370 ¼ so far.
Have a Great Trading Day!