Good Morning!
The Bank of England left its key rate unchanged as well as its asset purchases. So another day of reports and the doubts of the global economy has given the markets a further Sybil Psychosis of doom and gloom or there is light at the end of the tunnel. And the psychology is what effect the FED will have on the global marketplace if it does indeed raise rates.
On the corn front yesterday’s Crop Production USDA Supply/Demand report had no major surprises from the November report. Traders will still look at weather in South America and the U.S. dollar that weighs heavily on exports. In the overnight electronic session the March corn is currently trading at 375 ¼, which is 1 ½ of a cent higher. The trading range has been 375 ½ to 373 ¾ so far. The market continues to look weak at this moment.
On the Ethanol front there were no trades posted in the overnight electronic session. The January contract settled at 1.464 and is currently showing 2 bids @ 1.451 and 2 offers @ 1.467. This secondary market is following the personalities of corn, sugar, Energy Sector and politicians. And I brought up psychosis earlier.
On the crude oil front the market is still trying to find an identity of whether it is a bull or bear. I still remain fundamentally a bull. In the overnight electronic session the January contract is currently trading at 3686 which is 30 points lower. The trading range has been 3754 to 3656 so far. Geo-political shifts may produce a major move and I am at the table with the bulls.
On the natural gas front the market is waiting for the weekly EIA Gas Storage data at 9:30 A.M.. The market seems so close to a bottom even with unseasonable warm weather we have been experiencing the bears seem unwitting to pile on further with the downside limited. In the overnight electronic session the January contract is currently trading at 2.064 which is .002 of a cent higher. The trading range has been 2.073 to 2.044. This morning we are expecting a draw of 50 billion cubic feet which is correct we will see if it shakes any bears out of their shoes.
Have a Great Trading Day!