Good Morning!
China’s bank losses may top 400% of the Subprime Crisis according to Kyle Bass, the hedge-fund manager who successfully bet against mortgages during the last subprime crisis, he went on to say China’s banking may see losses of four times those suffered by U.S. banks during the last crisis. Story by Katia Porzecanski Bloomberg Business. The global stock markets are in the red, Europe stocks the lowest since 2013 and the UK FTSE 100 is the lowest since 2012. The Crude Oil market is taking another beating and we are seeing a flight to quality in the Gold and Silver market.
On the Corn front the market is trading ¼ of a cent lower in the overnight electronic session at 360. The trading range has been 360 ¾ to 359 ½. No real change in what we’re watching fundamentally here.
On the Crude Oil front global economic fears are trumping the oversupply theory. The Stock Market, Banks and Oil companies are taking a beating on Energy prices and the spillover effect is rattling investors biggest fears once again. In the overnight electronic session The March Crude Oil is currently trading at 2660, which is 85 points lower. The trade range has been 2747 to 2642. The low of 2619 held so far and we could see a bounce. That is the only comforting thing to say at the moment except we will need comforting words of wisdom from Janet Yellen so fear does not takeover common sense.
On the Natural Gas front the Thomson Reuters poll of 23 analysts showed draws on the EIA Gas Storage anywhere -105 bcf to -70 bcf. I am anticipating on the high side of 95 bcf. That compares to -152 bcf last week, -153 a year ago and the five-year average of -168 bcf. Thanks to Scott Disavino for computing the numbers. In the overnight electronic session the March Natural Gas is currently trading at 2.063, which is .017 cent higher. The trading range has been 2.093 to 2.047 so far. We are expecting more moderate temperatures on Monday.
Have a Great Trading Day!