Several Governments Warn Against Travel to China
Good Morning!
We kickoff the day with Advanced Durable Goods at 7:30 A.M., Redbook at 7:55 A.M., S&P/Case-Shiller Home Price YoY & MoM at 8:00 A.M., Consumer Confidence and Richmond Fed Manufacturing Index at 9:00 A.M., 52-Week Bill Auction and 2-Year FRN Auction at 10:30 A.M., 7-Year Note Auction at 12:00 P.M., API Energy Stocks at 3:30 P.m. and FOMC Meeting today with a rate decision tomorrow. It used to be if the U.S. sneezed the rest of the world would catch a cold. Times are now a changin… In this global economy it seems we have another black swan event that may slow down the pace that was moving to make more record breaking numbers in its path. More deaths in China due to the coronavirus and Hong Kong has suspended travel and cut rail links to and from China as the virus spreads. China is shutting down factories and all other business’ as they attempt to lasso this growing outbreak without a proven vaccine. Market traders and speculators are watching with great anticipation. The FED may take retractive action on rates with crisis growing to stimulate and calm the market. On the Grain front the complex was spooked as well with the coronavirus slowing down everything that uses Energy, and concerns of larger global supplies and weaker U.S. demand. The March Corn settled 6 ½ cents lower in yesterdays action. The one thing we do know quarantine or no quarantine people must eat. In the overnight electronic session the March Corn is currently trading at 381 ½, which is 1 cent higher. The trading range has been 382 ¾ to 381 ½.
On the Ethanol front the March contract is currently trading at 1.334, which is .013 higher. The trading range has been 1.336 to 1.324 with the market currently showing 2 bids @ 1.325 and 2 offers @ 1.334 with 5 contracts changing hands and Open Interest growing to 416 contracts.
On the Crude Oil front we are seeing Turnaround Tuesday with a little recovery from the panic sell and the prospect of OPEC to further their production cuts while the FED may make a move tomorrow as well. The API Energy Stocks ate out at 3:30 P.M. In the Overnight electronic session the march Crude Oil is currently trading at 5327, which is 13 points higher. The trading range has been 5361 to 5268.
On the natural Gas front the February Natural Gas Options expire today which could make for a rocky ride. The oversold market with demand fears and plenty of product is getting a little boost in the early going which could be attributed to profit taking. The weather modules are calling for warmer temperatures next week but who is to say we may see a spike if the Fed actually takes action tomorrow. In the overnight electronic session the February contract is currently trading at 1.937, which is 3 ½ cents higher. The trading range has been 1.938 to 1.883.
Have a Great Trading Day!