Welcome 2016?
Good Morning!
China manufacturing data cast a pall on the market and Saudi Arabia, Bahrain and Sudan cutting off diplomatic ties with Iran contributed to this major selloff not to mention the foreign policy of this weak sister of a president we have. These tensions are only adding further recipes of disaster in the cauldron.
In the overnight electronic session the March corn is currently trading at 358, which is ¾ of a cent lower. The trading range has been 360 to 357 ¾. The closure of maritime traffic down the Mississippi River has forced traffic to ride the magic carpet of steel. The railroads are keeping the panic out of the market for now.
On the ethanol front the February contract is currently trading at 1.425, which is .009 of a cent higher. The trading range has been 1.425 to 1.424 so far. We could see added strength in this market today.
On the crude oil front geo-political events trumped the weakness of the global stock markets. Asian, Europe and U.S. markets are down due to poor manufacturing data out of China. Throw in instability in the Middle East and the market scared the bears away. In the overnight electronic session the February contract is currently trading at 3766, which is 62 points higher. The trading range has been 3832 to 3680 so far. We could see a rocky road as diplomatic ties with Tehran are growing.
On the natural gas front the market is bouncing back after trading a little easier. In the overnight electronic session the February contract is currently trading at 2.343, which is ½ of a cent higher. The trading range has been 2.369 to 2.239 so far. We could see a spike in prices in today’s action.