The Ides Of March
Good Morning!
We kickoff the day with Export sales and Jobless Claims at 7:30 A.M., EIA Gas Storage at 9:30 A.M. and NOPA Crush at 11:00 A.M. The Grain market is the talk of the town with sales and exports soaring with no expectations of a slowdown soon. I expect the U.S. market will move like a juggernaut and weather permitting Farmers will be rolling. In the overnight electronic the May Corn is currently trading at 390 ¾, which is 2 cents higher. The trading range has been 390 ¾ to 387 ¼. With Corn prices where they are and week look at plantings of Soybeans while expectations of lower Corn plantings we must realize with Argentina’s crop will not meet what their usual expectations the U.S. market is more attractive at these price levels and we must look at human consumption, feed and other uses like Ethanol that will move this overloaded carryover.
Speaking of Ethanol in the overnight electronic session the April contract is currently trading at 1.528, which is .001 of a cent higher. The trading range has been 1.529 to 1.521 with 4 contracts changing hands and Open Interest slowly climbing to 1,152 contracts. The market is currently showing 1 bid @ 1.528 and 2 offers @ 1.535.
On the Crude Oil front what can you say except the bear pressure and false reports that supplies are plentiful and shale will keep the glut going. Shale or no Shale the reality is we have tight supplies and global demand continues to increase. With refineries in maintenance and we are buying Crude Oil it does not take a rocket scientist to tell you we are going to see higher prices once the shake and bake is over. In the overnight electronic session the April Crude Oil is currently trading at 6122 which is 22 points higher. The trading range has been 6145 to 6082.
On the Natural Gas front the market is always right. And with current weather this market is showing plenty of supply unlike the Crude Oil market. The EIA Gas Storage median is an expected draw of 96 bcf. In the overnight electronic session the April Natural Gas is currently trading at 2.741 which is 1 cent higher. The trading range has been 2.750 to 2.727.
Have a Great Trading Day!