Winter 2016 Made A Cameo
Good Morning!
Last week a blizzard hits the Northeast, this week the Plains and Mid-West. Last night’s American Petroleum Institute data only showed builds of U.S. crude stockpiles by 3.8 million barrels. This may have been priced in to the market because the smaller build definitely was a direct correlation with last week’s blizzard. Keeping people home and making labor and transportation next to impossible. This morning at 9:30 A.M. we will have data from the weekly Energy Information Agency (EIA), which should confirm the slowdown in production. In the overnight electronic session the March Crude Oil is currently trading at 3033 which is 45 points higher. The trading range has been 3066 to 2940 so far. Capital spending halts and massive layoffs and projects being halted by the majors and downgrades to the Energy powerhouses is only furthering my long-term bullish prognostication.
On the Natural Gas front the market is once again trading easier due to at above normal temperatures and lack of any sustained polar vortex this winter so far. In the overnight electronic the March contract is currently trading at 1.999 which is .026 cents lower. The trading range has been 2.056 to 1.994 so far. I will release the Thomson Reuters survey of analyst of what type a draw the street is looking for in tomorrow’s EIA Gas Storage.
On the Corn front we still are in somewhat of a sideways market, although, the market did want to work higher in yesterday’s trading session settling up 1 ½ of a cent higher. In the overnight electronic session the market is quiet once again with the March contract currently trading at 372 ½, which is unchanged. The trading range has been 373 to 371 showing a tight range. The market will be accessing the snow storm in the growing regions. We are not forecasted to have cold weather, which will cause snow melt, which will saturate the ground and cause possible flooding.
On the Ethanol front there were no trades posted in the overnight session. The March contract settled at 1.430 and is currently showing 5 bids @ 1.420 and 2 offers @ 1.437. This market is leaning to lower prices following the Reformulated Gasoline Blend stock and Corn markets.
Other reports today, ISM Non-Manufacturing Index at 9:00 A.M. At 2:00 P.M. we have Dairy Products and Dairy Product Sales.
Have a Great Trading Day!