Good Morning!
More good news from the incoming administration that is already showing mastery in creating jobs and now are putting the word out to expect an even playing field with tariffs. If you’re a trade partner with the U.S. and impose tariffs on U.S. goods we will be obliged to do the same to keep trade competitive and fair and we should see a more positive spin in the monthly U.S. Trade Balance.
On the Corn front the stockpiles are bigger but so is demand with exports huge and bigger Ethanol usage. Tomorrow should be interesting with Crop Production, Grain Stocks, USDA Supply/Demand and Winter Wheat Seeding data released at 11:00 A.M. In the overnight electronic session the March Corn is currently trading at 357, which is 1 ¼ of a cent lower. The trading range has been 357 ¾ to 356 ½.
On the Ethanol front the February contract posted a trade at 1.504, which is .001 of a cent higher. 1 contract traded at that price and the current market is showing 4 bids @ 1.466 and 1 offer @ 1.504 with Open Interest at 3,780 contracts. The March contract posted a trade at 1.522 which is .002 of a cent lower with 1 contract only trading at that price. The current market is showing 6 bids @ 1.483 and 2 offers @ 1.522 with Open Interest at 756 contracts.
On the Crude Oil front last night’s API data showed a 1.5 million barrel build in Crude stocks, 1.7 million barrel build in Gasoline stocks and a 5.5 million increase in Distillate inventories. The EIA will release its data at 9:30 A.M. Another factor in this market is Iran which has been exempted from the production cut deal has been reported to have moved 13.2 million barrels of a period between November 16th to January 7th with most exports going to Asia and mainly China. Given the production cut became effective earlier this month, the impact of the reduction may not be known until mid-February when OPEC releases its January production data. Contributing to this data and story Jenny W. Hsu CBS Market Watch. In the overnight electronic session the February Crude Oil is currently trading at 5112 which is 30 cents higher. The trading range has been 5133 to 5078.
On the Natural Gas front the market is seeking new highs as I write. Tomorrow's EIA Gas Storage number should show large draws in the injection number. Maybe to the tune of 150 billion cubic feet (bcf). Weather forecasters are predicting temperatures should peek tomorrow and has the mercury going back down to frigid levels. In the overnight electronic session the February Natural Gas is currently trading at 3.348, which is 7 cents higher and on the rise. The trading range has been 3.352 to 3.213.
Have a Great Trading Day!