Good Morning!
Sound exports reported yesterday versus last year even with the U.S. dollar continuing to gain strength. Even before yesterday’s Export Inspections investors heard that China may tender agin in the U.S. market which sent the complex in a frenzy and the market traded higher. In the overnight electronic session the March Corn is currently trading at 353 ½ which is 1 ½ of a cent lower. The trading range has been 354 ¾ to 353 ¼. Volume may continue to be light as certain investors are on the sidelines until the New Year.
On the Ethanol front the January contract posted a trade at 1.552 which is .001 of a cent lower. The February contact is currently trading at 1.518 which is .006 of a cent lower. The trading range has been 1.523 to 1.518. We are in rollover season as the Volume and Open Interest in these two contract months are showing rollovers are bustling.
On the Crude Oil front, the market is weighing demand destruction with a moderate earthquake in the southern Xinjiang region of China. The market may shrug off the initial shock as this autonomous region broke from being a province in 1955. There should be many suitors to aid and apply damage control. In the overnight electronic session, the February Crude Oil is bouncing back after the shock of the news of the earthquake and is currently trading at 5375, which is 15 points lower. The trading range has been 5429 to 5356. Later today we will have the weekly API Energy Stocks, which could be a boon of the market testing $60 a barrel before Friday’s close.
On the Natural Gas front, the market broke late yesterday after its electronic session. Weather reports, expiration of the January contract and light volume led to the disappointment of the market following through. In the overnight electronic session, the February Natural Gas is currently trading at 3.721, which is 4 ½ cents lower. The trading range has been 3.742 to 3.670. I still remain wildly bullish on this market and tomorrows EIA Gas Storage should rekindle bullish investors.
Have a Great Trading Day!