Good Morning!
As we move into Tuesday morning we start off with the U.S. Trade Balance at 7:30 A.M. followed by the ISM Non-Manufacturing Index at 9:00 A.M. Dairy Products at 2:00 P.M. and the weekly API Energy Stocks at 3:30 P.M.
On the Corn front we continue to look at weather, demand and actual acreage that will take the bears off the fence. In the overnight electronic session the May contract is currently trading at 356 ¼, which is 1 ¾ cents higher. The trading range has been 356 ¼ to 354 ¼ so far. The market is scraping for a reason to rally and it may come to a theatre near you. The bottom line is foreign currency trade, weather and product out of South America and when investors decipher all of this weather permitting, Sports fan’s we have a market!
On the Ethanol front there were no trades posted in the overnight electronic session. The expiration clock is counting down on the April contract and there were no trades posted in the entire shooting match. This market continues to follow other markets leads. The May contract settled at 1.483 and is currently showing 2 bids @ 1.480 and 1 offer @ 1.491.
On the Crude oil front we have the weekly API data later this afternoon, which we are anticipating a slightly bearish number with Crude Stocks showing builds of 2.5 million barrels, Cushing, Oklahoma showing draws of 500 thousand barrels, Gasoline Stocks down 2.5 million barrels and Distillates down 2 million and Refinery Runs coming in steady compared to last week. In the overnight electronic session the May contract is currently trading at 3540, which is 30 points lower. The trading range has been 3576 to 3524. I expect a golden buying opportunity here ahead of the meeting in Doha, Qatar.
Will these countries agree to drive themselves into bankruptcy? I think not.
On the Natural Gas front the market is falling on the heels of the recent rally. In the overnight electronic session the complex is pushing toward new lows. The May contract is currently trading at 1.996, which is .002 of a cent lower. The trading range has been 2.041 to 1.991 so far. We could see heavy trade that will create another short-term buying opportunity.
Have a Great Trading Day!