Happy Fat Tuesday!
Good Morning
The stock market will have challenges today to make a record 13 straight higher high with President Trump’s first address to Congress. Also that could pave the way to a correction are 4th-Quarter GDP at 7:30 A.M., Chicago PMI and Consumer Confidence at 9:00. We will also have API Weekly Energy Stocks at 3:30 P.M. Another consideration is Target's (NYSE:TGT) earnings are supposed to come out even weaker than previously expected with terrible Christmas shopping sales and they are still not filling up stores. These issues could negatively affect the chance of a record breaker.
On the Corn front traders seem to be getting moderately short-term bullish before the March 9 Crop Production USDA Supply/Demand data. President Trumps address tonight of his intentions to slashing the EPA regulatory restrictions and body could affect prices as well as the March 31 Prospective Plantings. In the overnight electronic session the May Corn is currently trading at 361 ¾ which is 1 ½ of a cent higher. The trading range has been 363 ¼ to 361 ¼. Today is First Notice Day on March Grains so if you have not rolled or liquidated you may have to retender.
On the Ethanol front there were no trades posted there were no trades posted in the overnight electronic session. The April contract settled at 1.528 and is currently showing 1 bid @ 1.525 and 1 offer @ 1.541 with Open Interest at 2,897 contracts.
On the Crude Oil front the market has been rather quiet ahead of tonight’s API Weekly Energy Stocks. In the overnight electronic session the April Crude Oil is currently trading at 5392, which is 13 points lower. The trading range has been 5423 to 5384. President Trumps is expected to announce an increase in military spending which has always been bullish to this market.
On the Natural Gas front the party is over. We may as well be in shoulder season already. March 1 is expected to come in like a lion with snow and temps in the 30’s but rebound to the 50’s by Saturday. Chicago made a record since reporting the weather we have never had a January or February without some sort of snow coverage. In the overnight electronic session the April contract is currently trading at 2.663 which is 3 cents lower. The trading range has been 2.705 to 2.653.
Have a Great Trading Day