Good Morning!
Soybeans' winning streak stopped after 4 trading sessions of higher closes based on hopes that the U.S.-China trade talks bear fruit. It really was more of a technical selloff as no true confirmation of a deal was going to be done with the exception the talks are moving in the right direction. Wheat prices rose as investors are expecting a pickup in export demand as U.S. prices are cheap compared to rival exporting countries. On the Corn front prices hit three week highs in yesterday’s trading session and hit a wall and sold off following the Soybeans lead. The Grain complex is in the green in the overnight electronic session. The March Corn is currently trading at 382 ½, which is 2 ½ cents higher. The trading range has been 382 ¾ to 380 ½.
On the Ethanol front the February contact is currently trading at 1.282, which is .011 higher. The trading range has been 1.282 to 1.278 with 20 contracts passing hands and Open Interest slowly dropping to 1,840 contracts as the March contract is gathering steam to be the front option. The February contract is currently showing 2 bids @ 1.278 and 2 offers @ 1.284.
On the Crude Oil front the market is realizing we do after all have a healthier global economy than what December told us and Oil producers are having trouble keeping solvent with these undervalued prices in the WTI Crude Oil prices. With production cuts and capital spending cuts after the market was pushed to its knees we now will have a push in the other direction. In the overnight electronic session the WTI Crude Oil punched through $50 a barrel and the sky could be the limit f trade talks are successful. The February Crude Oil is currently trading at 5125, which is 147 points higher. The trading range has been 5129 to 4971.
On the Natural Gas front the January effect meaning the January and February weather made me shiver. Average cold weather may put a bounce in the market, however in the overnight electronic session the February contract is currently trading at 2.968 which is .001 higher. The trading range has been 3.019 to 2.939.
Have a Great Trading Day!