Good Morning!
The American Petroleum Institute (API) last night released data of builds of 14.2 million barrels of oil in one week. I do not know where they get their information but it may have created a golden buying opportunity as the market held support of this shocking news. This morning the Energy Information Administration (EIA) may paint a clearer picture of what reality is. Violent storms including tornadoes are ravaging New Orleans as we speak and will affect refineries and movement from the Houston Shipping Channel to Henry Hub in Erath, Louisiana. Credibility aside, the market so far has held key support and reality will come into play soon. In the overnight electronic session the March Crude Oil is currently trading at 5177, which is 40 points lower. The trading range has been 5190 to 5122 so far.
On the Ethanol front there were no trades posted in in the overnight electronic session. The March contract settled at 1.572 and is currently showing 1 bid @ 1.563 and 1 offer @ 1.584 with declining Open Interest at 2,940 contracts.
On the Natural Gas front the weather is not cooperating with my bullish prophesy with a February that you would think the only rally we will see in this market would be putting on your air conditioner rather than heat your home. The market has held support at $3 so far but producers in the field guesstimate we could see $2.75 before it is all said and done if the current climate does not change. In the overnight electronic session the March contract is currently trading at 3.090 which is 4 cents lower. The trading range has been 3.155 to 3.060.
On the grain front we have a mixed bag of tricks in the complex this morning ahead of tomorrow’s report. Argentine and Brazilian weather being the catalyst in the Grain market with the U.S. market so close to plantings. In the overnight electronic session the March Corn is currently trading at 368, which is a ½ of a cent lower. The trading range has been 369 to 367 ¼. Remember, the U.S. dollar trade versus other global currencies will play a hand in global exports.
Have a Great Trading Day