Good Morning!
This morning’s reports are the EIA Gas Storage at 9:30, EIA Energy Stocks at 10:00 and Dairy Product Sales at 2:00 P.M.
In the overnight electronic session, the March corn is currently trading at 370 ¼, which is 1 ½ of a cent higher. The trading range has been 370 ½ to 368 ½ so far. I would like to see prices challenge 380 to nudge some sales at the elevators but with the winter weather hitting this weekend, transportation does not look to be in the cards for now.
On the ethanol there were no trades posted in the overnight electronic session. The February contract settled at 1.363 and is currently showing 2 bids @ 1.351 and 1 offer @ 1.368. This market is wondering how low we can go with the current glut in the short term.
On the crude oil front the API showed surprising builds of 4.6 million barrels. This morning’s EIA Energy Stocks at 10:00 will confirm if that number is a reality. We also could get an announcement out of Davos that could bring further market volatility. In the overnight electronic session the March crude oil is currently trading at 2799, which is 36 points lower. The trading range has been 2885 to 2787 so far.
A smaller build could spark a short covering rally.
On the Natural Gas front the market of late has shown some resiliency during this Energy Crush (no pun intended) mostly due to being already oversold with more and more capped wells and winter weather conditions. At 10:00 A.M. the EIA will release its weekly Gas Storage data. A Thomson Reuters poll of 21 analysts averaged out to a draw of 184 bcf ranging from 172-191 bcf. In the overnight electronic session the March contract is currently trading at 2.130 which .012 cent higher. The trading range has been 2.170 to 2.111 so far.
Have a Great Trading Day!