Last night’s American Petroleum Institute (API) showed a whopping build of 5.8 million barrels and the market just seemed to shrug the news off. Saudi Arabia’s oil minister Khalid al-Falih praised President Trump’s energy policy and said he welcomed the increase of American oil production “as long as they grow in line with global energy demand.” Contributing to this story Benot Faucon and Michael Amon of CBS Marketwatch. In the overnight electronic session the March Crude Oil is currently trading at 5320 which is 39 points higher. The trading range has been 5328 to 5264. This could be another sign we have reached a bottom barring any global economic surprise that would create demand destruction.
On the Natural Gas front colder weather moving in may stop the selloff for now. The weekly EIA Gas Storage is tomorrow. In the overnight electronic session the March contract is currently trading at 3.182 which is 6 ½ cents lower. The trading range has been 3.228 to 3.113.
On the Ethanol front the March contract posted a trade at 1.530 which .016 cent higher. 2 contracts traded at that price and the market is currently showing 7 bids @ 1.530 and 1 offer @ 1.550 with Open Interest at 3.281 contracts.
On the Corn front the market had an inside day yesterday. Light volume with the Chinese New Year and today Golden Week in China expect light volume. As news of the (GMO) Genetically Modified Organism is going to be an uphill battle the next few years in Mexico which will not help exports according to Monsanto (NYSE:MON) reports and better Argentine weather and crop reports trumped the strong Ethanol and Crude Oil market. In the overnight electronic session the March Corn is currently trading at 358 ½ which is 1 ¼ of a cent lower. The trading range has been 360 ¼ to 358.
A lot of reports today starting at 9:00 A.M. with Construction Spending and ISM Manufacturing Index. EIA Gas Storage at 9:30 A.M. Fed Announcement at 1:00 PM. Cotton System, Dairy Product Sales, Fats & Oils and Grain, Cushing at 2:00 P.M.
Have a Great Trading Day