And Away We Go!
We jump-start this day with Export Sales and Jobless Claims at 7:30 A.M., EIA Gas Storage at 9:30 A.M. and Crop Production USDA Supply/Demand at 11:00 A.M. Make no mistake about it this is a big day for the Grain complex. On the Corn front we have great movement in sales and today’s Export Sales not to mention the big data at 11:00 A.M. is proving the Corn market at these prices are very attractive and we should see product move. In the overnight electronic session the May Corn is currently trading at 387 ¼ which is unchanged. The trading range has been 387 ¼ to 385 ¾. Grain traders and investors, “Buckle Up Your Chinstraps!”
On the Ethanol front the April contract is currently trading at 1.517, which is .002 higher. The trading range has been 1.517 to 1.510. The market is currently showing 2 bids @ 1.515 and 1 offer @ 1.519. 2 contracts changed hands and Open Interest is declining to 1,078 contracts. Today’s Grain reports should further educate us on demand in this market while other countries are exporting Ethanol.
On the Crude Oil front the market shock & awe because of the tariffs shacked, rattled and rolled the Stock Market and rallied the U.S. dollar, which caused the selloff. As far as I am concerned this is a typical market overreaction. At the end of the day investors will realize that supply and demand is what takes place in a free market system. And with our current production and storage being outpaced by demand we will see higher prices. In the overnight electronic session the April Crude Oil is currently trading at 6118, which is 3 tics higher. The trading range has been 6140 to 6095.
On the Natural gas front, today is Thursday and EIA Gas Storage day and the weekly Thomson Reuters poll with 21 analysts participating expect draws from 44 bcf to 58 bcf with the median of 58 bcf. This compares to last year’s decline of 57 bcf, which was also a warm week and the five-year average of 129 bcf. In the overnight electronic session the April Natural Gas is currently trading at 2.772, which is a ½ of a cent lower. The trading range has been 2.793 to 2.758. With current weather and capacity full especially with the U.S. exporting, until we have less storage in this market and more domestic and global demand expect the floor to drop as we move into shoulder season.
Have a Great Trading Day!
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