Crop Production USDA Supply/Demand and WASDE Reports
Good Morning!
We started the day with NFIB Business Optimism Index at 5:00 A.M. that came out at 104.7 versus the previous 102.4 and the street looking for 102., Unit Labour Cost QoQ (Q-3) came out at 2.5% vs. the previous 2.4% and forecast of 3.6%, Nonfarm Productivity QoQ Final (Q-3) came out -0.2% vs. the previous 2.5% and forecast of -0.3% at 7:30 A.M., Redbook at 7:55 A.M., Crop Production USDA Supply/Demand and WASDE Report at 11:00 A.M. API Energy Stocks at 3:30 P.M. and day 1 of the Fed meeting and questions if we have a stocking stuffer with a rate cut or does Santa Claus put coal in its place as we do have a strong jobs market. Talks of the December 15 tariffs may be delayed has investors believing there is light at the end of the tunnel on “Phase 1 of the U.S.-China Trade Talks. Also the new NAFTAS deal looks imminent as negotiating side from U.S., Canada and Mexico are scheduled to make a news conference at high noon. It is high time we finally have this done as it sat on Nancy Pelosi’s desk for a year and a half. But she had other priorities like investigating Stormy Daniels, Russian Collusion and the Ukraine. But nothing to see here like the high crimes of the swamp. Let’s keep moving forward America! On the Corn front heading into today’s big reports at 11:00 A.M. investors seem to be realizing we are making traction in the trade disputes. In the overnight electronic session the March Corn is currently trading at 376, which is a ¼ of a cent higher. The trading range has been 376 ¼ to 375.
On the Ethanol front there were no trades posted in the overnight electronic session. The January contract settled at 1.363 and is currently showing 1 bid @ 1.344 and 1 offer @ 1.373 with Open Interest at 460 contracts. This market will be happy with the New NAFTA deal and positive developments in U.S.-China trade talks.
On the Crude Oil front the market came roaring back like the Stock Market as the positive signals cannot be denied. In the overnight electronic session the January Crude Oil is currently trading at 5903, which is 1 tic higher. The trading range has been 5941 to 5852. If the U.S.-China “Phase 1” gets signed and we have a bullish API number expect to punch through $60 a barrel in a big way.
On the Natural Gas front the market is mostly holding steady after yesterday’s big selloff. A cold front moved in but warmer temps are expected to follow in a few days. In the overnight electronic session the January Natural Gas is currently trading at 2.237 which is a ½ of a cent higher. The trading range has been 2.256 to 2.216..
Have a Great Trading Day!