Good Morning!
The global markets are burping on our hiccup correction as we knew it was coming starting with it was eventual a bull market must retreat from the gains of a major rally and a more hawkish view on Interest Rates, which is a sign the economy is on the move in a great way. It just can’t continue to roll like a juggernaut without any resistance and this market corrected on good news not bad news... Another factor with months of the VIX shaking off all of the volatility and finally are seeing the signs we could be volatile from here on out which is not necessarily a bad thing. Another thing to think about is all the algorithm traders losing money trading and writing VIX options to do window dressing but with Friday’s and yesterday’s action the VIX woke up creating a panic. This morning we have the U.S. Trade Balance and at 3:30 P.M. we have the API Energy Stocks. On Thursday we will have world crop end-stocks, South America crop report and U.S. grain end-stocks. On the Corn front the March Corn is currently trading at 358, which is ¾ of a cent lower. The trading range has been 358 ¾ to 356 ¼. The market may be quiet heading into Thursday Export Sales, Crop Production USDA Supply/Demand.
On the Ethanol front there were no trades posted in the overnight electronic session. The March contract settled at 1.431, and is currently showing 1 bid @ 1.431 and 1 offer @ 1.435 with Open Interest at 1,213 contracts and the April on its heels with 503 contracts Open with an early Easter which is usually the start of the summer driving season.
On the Crude Oil front the whisper numbers are calling for builds on Crude Oil and draws on Products. In the overnight electronic session the March Crude Oil is currently trading at 6330, which is 85 points higher. The trading range has been 6398 to 6312.
On the Natural Gas front the market remains in selloff mode regardless of the weather. In the overnight electronic session the March contract is currently trading at 2.717 which is 3 cents lower. The trading range has been 2.785 to 2.712. We will need another record draw on Thursdays EIA Gas Storage for this market to take notice.
Let’s Have a Turnaround Tuesday!