Good Morning!
The market freaks out again with China imposing further tariffs attacking U.S. Soybeans, cars and whiskey. The poor sons of guns. The market is facing the next drama to see the VIX seeking higher highs. In the overnight electronic session the May Corn is currently trading at 379 ¼, which is 9 ¼ cents lower. The trading range has been 389 to 372. With news that the carryover called to be at a five-year low and China must feed her people and they will continue to need cars versus bicycles to be a truly emerging market. And with the emerging markets as India and Vietnam to be competitive and China’s ambitions to have their Renewable Fuel Standard (RFS) by 2020 they will be sorry they implemented further duties on Ethanol, which could be a shocking blow to what they want to accomplish. Speaking of Ethanol in the overnight electronic session the May contract is currently trading at 1.400 which is .026 lower. The trading range has been 1.419 to 1.390. The market is currently showing 1 bid @ 1.400 and 2 offers @ 1.404. 101 contracts changed hands and Open Interest is at 998 contracts.
On the Crude Oil front tariffs will not trump the basic fundamentals in today’s action. We had a turnaround Tuesday after a Manic Monday and now we have Wacky Wednesday. This morning we have the EIA Energy Stocks, which should further paint a picture of the saber-rattling and the demand in this market will keep the market in balance. In the overnight electronic session the May Crude Oil is currently trading at 6221, which is 130 points lower. The trading range has been 6364 to 6210.
On the Natural Gas front crazy weather continues to support this market until Old Man Winter gasps his last breath. In the overnight electronic session the May Natural Gas is currently trading at 2.737, which is 4 cents higher. The trading range has been 2.737 to 2,675.
Have a Great Trading Day!