Fake News Filibuster Continues
Good Morning!
Traders a couple years ago that there was not enough volatility in the markets and everyone was selling premium in the VIX Index. And now there is plenty of volatility, which is scaring investors from participating. With may too many soundbites that have no reliability and or credibility the market sure seems to be shake, rattled and roll the market place. Private analytics firm IEG Vantage, formerly known as Informa Economics, IEG projected that U.S. farmers will add volatility acres while pulling back on Cotton, Soybeans and Wheat acreage. This is another headline that will add to where investors stand and trust especially with the U.S. – China trade talks that seem to create headlines good bad or different, Just the facts Mam. In the overnight electronic session the March Corn is currently trading at 378 ¼, which is a ½ of a cent lower. The trading range has been 379 ¾ to 377 ½.
On the Ethanol front the February contract posted a trade at 1.272, which is .002 higher. 11 contracts traded and Open Interest is declining to 1,043 as we move closer to expiration and the March contract is showing more open positions. The February contract is currently showing 3 bids @ 1.269 and 4 offers @ 1.274.
On the Crude Oil front we continue the whipsaw on headlines whether it is Iran, Venezuela or OPEC production cuts and what that means to the global economy. Let’s speak in reality terms Venezuela cannot just be a market player with their socialist regime in shambles, Iran is on notice and Saudi Arabia is pushing for $80 a barrel. The global economy is not falling apart and we will thirst for Oil to keep the lights on. Last nights API Inventories showed builds across the board with Crude Oil WTI Futures stocks up 6.551 million barrels, Gasoline up 3.635 million, Distillates up 2.573 million and Cushing Oklahoma up 359 thousand barrels. In the overnight electronic session the March Crude Oil is currently trading at 5258, which is 4 tics lower. The trading range has been 5288 to 5207.
On the Natural Gas front the market is buying into the Arctic Blast or Polar Vortex seeing it is January and closing into February and after Tuesday’s tumble after coming back from a long weekend the verdict is in as more bone chilling blast from the north will continue for weeks and buyers are buying into the reports. I can’t wait to see that darn groundhog. In the overnight electronic session the February Natural Gas is currently trading at 3.080, which is 10 cents higher. The trading range has been 3.111 to 2.988.
Have a Great Trading Day!