Good Morning!
Just when you thought it was safe to go back in the water, disappointing Chinese manufacturing data and no solid hopes of a coordinated production cut by the worlds heavy oil producers are spooking commodity prices as we start this month on Monday. Today’s reports start out with Personal Income followed by Construction Spending and ISM Manufacturing Index at 9:00 A.M. Export Inspections at 10:00 A.M. and finally at 2:00 P.M. Fats & Oils with Grain Crushing’s.
In the overnight electronic session the March corn is currently trading at 368 ¼, which is 3 ¾ cents lower. The trading range has been 371 ¼ to 367 ¾ so far. Farmers are getting antsy with horrendous exports and a slower than usual cash market.
On the ethanol front there were no trades posted in the overnight session. The March contract settled at 1.438 and is currently showing 4 bids @ 1.422 and 2 offers @ 1.429.
On the crude oil front last week’s bullish news is old news this Monday starting the month with dreams Russia and OPEC would agree on production cuts. And of course the Chines manufacturing data holding a trump card in this market. In the overnight electronic session the March contract is currently trading at 3227, which is 135 points lower. The trading range has been 3418 to 3210 so far. I am anticipating a bounce during Monday’s trading session and may add more three way trades.
On the natural gas front the market is taking a beating as well. And as I write we are making new lows. In the overnight the March contract is currently trading at 2.155, which is 14.3 cents lower. The trading range has been 2.228 to 2.154 and sinking fast. Weather may change the steep fall if transportation is not a big issue also draws in the injection number may come to roost sooner or later.
Have a Great Trading Day!