Good Morning!
We jumpstart the day with Capacity Utilization and Industrial Production at 8:15 A.M. and API Energy Stocks at 3:30 P.M. delayed a day due to Monday’s holiday. I am expecting a draw in Crude Stocks of 2 million barrels. On the Corn front the market continues to move nowhere fast. In the overnight electronic session the March Corn is currently trading at 348 ¾, which is a ½ of a cent higher. The trading range has been 349 to 348 ¼. No news other than a large carryover continues to dominate lower prices.
On the Ethanol front news that Brazil is considering the removal of a 20% tariff on Ethanol imports, which began last year after the U.S. banned beef imports from Brazil following a food safety scandal involving bribes paid to inspectors that led to heightened expectations’ by the U.S. and uncovered potential health risks. Jack Spring and Mateus Maier from Thomson Reuters reported yesterday. In the overnight electronic session the February Ethanol posted a trade at 1.363 which is .002 of a cent higher. The market is currently showing 1 bid @ 1.357 and 1 offer @ 1.363 with Open Interest at 1,152 contracts.
On the Crude Oil front the market is bouncing back from the lows in the overnight electronic session and looking resilient. The February contract is currently trading at 6360, which is 13 points lower. The trading range has been 6396 to 6331. Expecting draws on the API data later this afternoon but the market could be looking at demand destruction with the inclement weather in the East and the South.
On the Natural Gas front the February contract is currently trading at 3.209, which is 8 cents higher. The trading range has been 3.218 to 3.098. If the weather reports are correct and the Chicago area reaches 40 degrees Fahrenheit on Friday we could see a selloff with the bottom dropping out.
Have a Great Trading Day!