Good Morning!
We are off to a busy Tuesday as the Bank of Japan holds steady on monetary policy but the verbiage of uncertain economic woes cast a pall over the markets as we see in the current trade at the moment. The FED will meet today and tomorrow to discuss raising Interest Rates and what verbiage will come out of this two-day meeting. Investors are concerned with impact as the global economy is concerned about the divisive trend in the Euro-zone. This morning at 7:30 A.M. we have Business Inventories, PPI and Retail Sales. At 11:00 A.M. we have the NOPA Crush and at 3:30 P.M. the weekly API Energy Stocks.
In the overnight electronic session the May Corn is currently trading at 367 ½, which is 1 ¼ cent lower. The trading range has been 368 ¼ to 367. Pressure is still in this market with South American harvest and what we are expecting the U.S Farmer to plant. This market is treading water in these financially tough times and at the end of the tunnel you need customers to buy product. As we get closer to planting intentions we must remember it is not what you plant but what you grow.
On the Ethanol front the April contract posted a trade at 1.431, which is .007 of a cent lower. After yesterday’s action the market seems skittish in which direction to go in this shoulder season.
On the Crude Oil front the market is down again with economic uncertainty coming out of Asia and Europe. News of a Russian pull out of Syria is sending what signs of scheduled March 20 meeting of OPEC and non-OPEC nations in Russia which has not been completely shelved yet. This is adding to profit on the latest rally in this market. In the overnight electronic session the April contract is currently trading at 3630, which is 88 points lower. The trading range has been 3740 to 3611 so far. Weekly inventories and the FED’s verbiage will factor in this market this week.
On the Natural Gas front the market is showing some strength after being in a total oversold mode. Rig count continue to decline and producers are capping wells and losing business at an extreme pace no one wants to see. In the overnight electronic session the April contract is currently trading at 1.849 which is 3 cents higher. The trading range has been 1.851 to 1.808 so far.
Have a Great Trading Day!