Good Morning!
The Energies may have awoken a sleeping giant in the Grain complex. Farmer selling and fund short covering has been the support to this market with cheap prices and we are close to key support. In the overnight electronic session the March Corn is currently trading at 373 ¼, which is 2 ¼ cents higher. The trading range has been 373 ½ to 371 so far. Concerns about carryout and exports could keep the bearish pressure on.
On the Ethanol front production is slowing but is still ahead of last year’s pace. In the overnight electronic session the March contract posted a trade at 1.413 which is .004 of a cent higher. This market is playing follow the leader with low volume and government mandates dictate where prices will trade in the future.
On the Crude Oil front the market was taking a hiatus in early going after yesterday’s gains and more bullish news has spiked prices in the short term and in the long term I remain wildly bullish. Rumors that six OPEN and six Non-OPEC nations are going to meet and the only clairvoyant picture that is painted in my mind is an across the board agreement of production cuts to bolster prices. Again even if they agree to disagree will these nations heed deeds not words or is this just another exercise in stupidity? In the overnight electronic session the March crude Oil is currently trading at 3336 which is 108 points higher. The trading range has been 3360 to 3168 so far.
On the Natural Gas front the market is torn between close to all-time lows to spike with continued production cuts due to profit margins. This morning we will have the EIA Gas Storage data. And a Thomson Reuters poll of 23 analyst averaged out to be a draw of 158 bcf ranging from -116 to -202. If you look at the five year average it is still a decrease of 168 billion cubic feet. That alone is a tell tale sign that cannot be ignored. In the overnight electronic session the March contract is currently trading at 1.998 which is 5 cents lower. The trading range has been 2.048 to 1.984 so far. Expect a wild trading session today.
Have a Great Trading Day!