Earnings Boosting Markets
Good Morning!
Johnson & Johnson (NYSE:JNJ) earnings kick-started this day and we also have Capacity Utilization and Industrial Production at 8:15 A.M., we also have API Energy Stocks at 3:30 P.M. On the Corn front U.S. crop handler The Andersons (NASDAQ:ANDE) agreed to takeover Lansing Trade Group LLC in a deal valued at $305 million. Depressed prices, large carryover and growing competition from Latin America and the Black Sea led to the move. Lansing will be integrated into the Maumee, Ohio based company grain unit and the joint operation will be run by Corey Jorgenson currently President of The Anderson Grain Group. And Lansing Chief Executive Officer Bill Krueger. The December Corn traded above the 100-day moving average in yesterday’s trading session and with this weather we are experiencing with frost, snow and wind-chill factors have been supportive to prices finally. The USDA’s take on yields and carryover also lent a helping hand. Regardless of the rally U.S. Corn is still rather cheap, which could be good value to buy. Go Exports! In the overnight electronic session the December Corn is currently trading at 375 ½ which is 2 ¾ cents lower. The trading range has been 377 ½ to 375 ¼.
On the Ethanol front the naysayers are out already trying to derail expanding Ethanol Exports. And exports would have a limited impact on the U.S. market. Well I beg to differ when we have a globe with emerging markets thirsting for energy and we have tight supplies we can expect less octane and more fuel, importers will look to quantities. In the overnight electronic session the November Ethanol is currently trading at 1.291, which is .017 lower. The trading range has been 1.302 to 1.290. 41 contracts traded and Open Interest dropped to 1,218 contracts. The market is currently showing 2 bids @ 1.287 and 2 offers @ 1.292.