Good Morning!
Old Man Winter had packed another power punch before Spring officially arrives next week. The Rockies were dealt a blow that was unheard of even for them and now the Plains and Mid-West are next on the map as this Mammoth monster moves North-Northeast covering the Canadian border to the Southern (NYSE:SO) States. With all the rain and snow this Goliath is producing there are more fears that this could bring the Mississippi to flood stage an inland flooding as well. On the Corn front it is Last Trading Day on all March Grains. Strong rumors are supporting the market as the whispers that China is buying 3 million metric tonnes of U.S. Corn for PNW shipment. This could be both 2018/19 and 2019/20 crop. In the overnight electronic session the May Corn is currently trading at 367, which is 1 ½ of a cent higher. The trading range has been 369 ¼ to 366 ¼.
On the Ethanol front Brazil will be sending Agriculture Minister Tereza Cristina to the U.S. next week with hopes of regaining the beef export market to the U.S. that was suspended two years ago for safety concerns. Although that is her top priority she will also talk Ethanol and Sugar exports as the U.S. China talks are going well with U.S. Corn and Ethanol exports. Brazil’s Ethanol is Sugar based and they would like their presence known in this market as well. In the overnight electronic session the April Ethanol posted a trade at 1.339, which is .009 higher. 1 contract traded and Open Interest is at 1,120 contracts. The market is currently showing 1 bid @ 1.333 and 1 offer @ 1.340.
On the Crude Oil front the market is rolling even with negative economic data reported on China. One thing is for sure they are still consuming and they are still importing in a big way, which shows be it is not a weak economy. I do not understand where they get their data from but they should look elsewhere. OPEC continues cut exports and production, Venezuela’s putting a further gap in tight supplies and growing demand in Diesel will get the Energy complex in a seasonal up move. The squeeze is on! In the overnight electronic session the April Crude Oil is currently trading at 5850, which is 24 points higher. The trading range has been 5867 to 5800.
On the Natural Gas front the market is currently trading at mid-range and a little higher off winter’s las blast. In the overnight electronic session the April Natural Gas is currently trading at 2.840 which is 2 cents higher. The trading range has been 2.852 to 2.824.
Have a Great Trading Day!