Good Morning!
Chinese suspend trading after 7% plunge following weakness in the yuan putting more salt on the wound after bad manufacturing data to ring in the New Year. Global markets followed suit and carried over to the oil patch. News out of the Middle-East is not conducive to OPEC countries at odds to stop pumping, which at the moment has been determined to be bearish the only bullish spin would be if hostilities broke out in this fragile part of the globe. This morning we have Initial Jobless Claims and weekly Export Sales at 7:30 A.M. and weekly EIA Gas Storage at 9:30 A.M where a poll of 20 experts predicts draws from -84 to -118 bcf averaging out at -99bcf.
In the overnight electronic session the Grain complex is trading easier in sympathy with the negative impact on global markets, which should raise unemployment and bad economic woes and the market is not as panicked as others. The March corn is currently trading at 350 ¾, which is 3 ½ cents lower. The trading range has been 353 ¾ to 350 ¾ so far.
On the ethanol front the February contract is currently trading at 1.313, which is 2 cents lower. The trading range has been 1.317 to 1.306 so far.
On the crude oil front with all the negative news the prices seem resilient considering all of OPEC news of keeping the production cuts on the sidelines. In the overnight electronic session the February contract is currently trading at 3287, which is 110 points lower. The trading range has been3426 to 3210 so far. The start of this New Year is reminiscent of the Black Swan events with the Saudi’s overproducing to cut into U.S. fracking industry, the devaluation of the yuan and the challenge that almost broke up the European Union. If the Stock market steadies we could see oil prices recover changing whatever bearish sentiment in the market.
On the natural gas front we have the weekly Gas Storage today and the market seems to be pricing in the cold weather we will be realizing starting this weekend. In the overnight electronic session the February contract is currently trading at 2.301, which is .034 cents higher. The trading range has been 2.336 to 2.271. Should be an interesting day in this market.
Have a Great Trading Day!