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Back To Record Draws On Natural Gas?

Published 12/22/2016, 12:53 PM
Updated 07/09/2023, 06:31 AM
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We will have a busy morning starting out at the gate with CPI, Export Sales, 3rd-Quarter GDP, Initial Jobless Claims and Personal Income at 7:30 A.M. At 9:30 A.M. EIA Gas Storage followed up by NOPA Crush at 11:00 A.M. The Thomson Reuters poll of 19 participants in the Natural Gas Storage estimates draws ranging from 179 bcf to 216 bcf with the average of 201 bcf. This compares to declines of 50 bcf last year and the five-year average of 80 bcf for the same week. Seriously, the largest ever draw on record was set in January 2008 with a draw of 274 bcf. That January saw weather extremes including tornadoes, which set the market soaring and peaked at 8.481 that month. In the overnight electronic session the January contract is currently trading at 3.532 which is 1 cent lower. The trading range has been 3.626 to 3.527 and sinking ahead of today’s number.

On the Corn front it has been pretty quiet trade in the overnight electronic session. The selloff in the Soybean Oil seemed to pressure the entire Grain complex. In the overnight electronic session the March Corn is currently trading at 346 ¾, which is ½ cent lower. The trading range has been 348 to 346 ¼.

On the Ethanol front there were no trades posted in the overnight electronic session. The market settled at 1.549 and is currently showing 2 bids @ 1.542 and 1 offer @ 1.565.

On the Crude Oil front, yesterday’s EIA data although not as bullish as the API data still was convincing enough that overall the data is bullish regardless of the swing of millions of barrels and OPEC and non-OPEC countries resolute on production cuts. In the overnight electronic session the February Crude Oil is currently trading at 5214, which is 35 points lower. The trading range has been 5271 to 5208.

Have a Great Trading Day!

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