Unemployment Data And China Talks On The Table Today
Good Morning!
We start off this first day of February with Unemployment data at 7:30 A.M., Construction Spending and ISM Manufacturing Index at 9:00 A.M. followed by Cotton System, Fats & Oils and Grain Crushings at 2:00 P.M. U.S.-China trade talks continue with both sides eager to reach a solution while these negotiations will navigate who is playing chicken and who is going to blink an eye and on the U.S. side that is not going to happen. President Trump quoted yesterday, “ This isn’t going to be a small deal with China, this is going to be a very big deal, or it’s going to be a deal that we’ll just postpone for a little while.”
China’s economic data shows me they need the deal as much as we do and the free trade world and the yearning of such a deal will not be compromised with Intellectual Property and that is the question who is going to blink? On the Corn front the market is watching for developments with the trade talks. The Grains as a whole seem confident in the early going with Corn and Soybeans trading higher. In the overnight electronic session the March Corn is currently trading at 379, which is 2 ½ cents higher. The trading range has been 379 ¼ to 376 ½.
On the Ethanol front the March contract is currently trading at 1.302 which is .013 higher. The trading range has been 1.302 to 1.293. 29 contracts traded and Open Interest is climbed to 1,750 contracts. The market is currently showing 2 bids @ 1.298 and 4 offers @ 1.798.
On the Crude Oil front the Daily chart is clearly showing a reverse head and shoulders and on the fundamental side there is more and more bullish information to make this market spike in a big way. With sanctions on Venezuela and Iran on notice, the Saudi’s and Russians are solid to cut production at these price levels. So if the U.S.-China talks succeed we will have loads of demand and product in short supply. In the overnight electronic session the March Crude Oil is currently trading at 5364, which is 15 tics lower. The trading range has been 5419 to 5337.
On the Natural Gas front the market is playing the weather forecast and are poised for a warm-up forecasted for this weekend. In the overnight electronic session the March Natural Gas is currently trading at 2.794, which is 2 cents lower. The trading range has been 2.850 to 2.778.
Have a Great Trading Day!