Good Morning!
The latest fear factor in the market despite yesterday’s hike in Interest Rates is now a possible trade war with China that could affect Grain and Pork sales, which is pressuring the Stock Market in the early going. Export Sales have been delayed until tomorrow with the inclement weather the east coast is experiencing. We will have Jobless Claims at 7:30 A.M., EIA Gas Storage at 9:30 A.M. and no word if Cold Storage will be delayed that is schedule to be released at 2:00 P.M. C.S.T. On the Corn front Rabobank cut its 2017-18 Argentine Corn production estimate to 33 million tonnes from 36.5 million tonnes last month. It left its Brazilian production to 85.5 million tonnes, unchanged from last month. In the overnight electronic session the May Corn is currently trading at 376 ¾ which is 1 ¾ of a cent higher. The trading range has been 377 ½ to 375.
On the Ethanol front there were no trades posted in the overnight electronic session. The April contract settled at 1.471 and is currently showing 5 bids @ 1.474 and 1 offer @ 1.482. The Open Interest declined to 690 contracts and the May Open Interest could shoot past the April in today’s trading session with 663 contracts open.
On the Crude Oil front weakness in Stocks and also after a big run up in yesterday’s trading session we could expect us to be trading lower in the early going. I do expect the Energy complex to rebound. Scotiabank is expecting a bullish U.S. Oil market for the next couple of quarters. In the overnight electronic session the May Crude Oil is currently trading at 6470 which is 47 points lower. The trading range has been 6574 to 6455 so far.
On the Natural Gas front we have the weekly EIA Gas Storage this morning. The Thomson Reuters poll with 26 analysts participating expect draws from 77 bcf to 95 bcf with the median decline of 88 bcf. This compares to the one-year of declines of 58 bcf and the five-year average decline of 46 bcf. With a rough March weather-wise the contract is not moving much and is acting like limited upside. In the overnight electronic session the April contract is currently trading at 2.643 which is a ½ of a cent higher. The trading range has been 2.658 to 2.640.
Have a Great Trading Day!