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Crude Oil Is Overbought

Published 12/05/2017, 10:42 AM
Updated 07/09/2023, 06:31 AM
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Recognizing Jerusalem: A Red Line?

Good Morning!

We seek peace through strength and if you threaten us go back to your shores and take the U.N. with you. We are a free country not a complicit country and Do Not Forget about It!

This morning we have the U.S. Trade Balance at 7:30 A.M., ISM Non-Manufacturing Index at 9:00 A.M., Dairy Product Sales at 2:00 P.M. and API Energy Stocks at 3:30 P.M. The Grain complex will have investors focused on weather in South America and we will have a look at next week’s Crop Production USDA Supply/Demand and follow exports to emerging markets that will be happy to take our carryover if the price is right. In the overnight electronic session the March Corn is currently trading at 354 ½, which is 1 cent higher. The trading range has been 354 ½ to 353 ¼.

On the Ethanol front the January contract is currently trading at 1.364, which is .003 of a cent higher. The trading range has been 1.365 to 1.361 with 8 contracts traded with the market currently showing 1 bid @ 1.359 and 1 offer @ 1.369 with Open Interest at 1,283.

On the Crude Oil front the market is still trading in overbought mode, however fundamentals will have investors dancing to our tune and cap this sideways trading and mount a gusher of a rally I anticipate. With global economies coming out of the abyss creating global demand and OPEC production cuts firmly in place, I see the glut of oil falling to demand as oil feeds the world's insatiable appetite for more fuel at this time. In the overnight electronic session the January Crude Oil is currently trading at 5733, which is 14 tics lower. The trading range has been 5764 to 5708.

On the Natural Gas front we have cooler temperatures that were forecasted and yet the market is trading lower this morning when the cold weather hits. In the overnight electronic session the January Natural Gas is currently trading at 2.920, which is 6 ½ cents lower. The trading range has been 2.998 to 2.918.

Have a Great Trading Day!

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