Good Morning!
Crazy weather across the country this past week and varying conditions depending in which part of the country you spent your Christmas holiday. As I tracked north to Wisconsin looking at the growing fields in Northern Illinois and Southeastern Wisconsin I noticed flooding in the fields that were not ponds but lakes with currents moving as the wind took its toll as well. One thing is for certain we will need a good freeze to slow the population of bugs that will most definitely cause disease in the new crop as we get past plantings. In the overnight electronic session the March corn is currently trading at 365, which is a ½ of a cent higher. The trading range has been 365 ½ to 363 ½ so far.
On the ethanol front we have very quiet trade as we are heading closer to expiration on the January contract and there were no trades posted there while the February contact posted a trade at 1.413 which is .007 of a cent lower. Expect weak trade in this market today.
On the crude oil front weak Industrial data out of Asia raises demand fears once again and created selling off of recent rallies in this market. In the overnight electronic session the February contract is currently trading at 3710, which is 100 points lower. The trading range has been 3809 to 3682. I see this dip as a buying opportunity. Follow your technical support in this holiday market.
On the natural gas front the January contract is due to expire shortly so we change our focus to the February contract. Certain weather prognosticators are calling for typical January temperatures which is riding this short-covering rally in this oversold market. In the overnight electronic session the February contract is currently trading at 2.135 which is 5.6 cents higher. The trading range has been 2.170 to 2.111 so far. Buckle up your chinstrap… We could see further spikes.
Have a Great Trading Day!