Good Morning!
This morning’s reports at 7:30 A.M. are Advanced Durable Goods, Export Sales and Initial Jobless Claims. At 9:30 A.M. we have the weekly EIA Gas Storage which a Thomson Reuters poll showed an average draw of 207 bcf’s from many analysts in the industry. The range from these prognosticators are between -180 to -245. The Price Group guesstimate is a draw of 186 bcf’s. All the markets continue to be on a wild ride. Let’s take advantage of the volatility!
In the overnight electronic session the March corn is currently trading at 368 ¼, which is 1 cent higher. The trading range has been 369 ¾ to 367 ¾ so far. This mostly weather traded market at the moment needs some news and cash movement to get traders excited.
On the ethanol front there were no trades posted on the February contract as it is coming close to an expiring market. The March contract is currently trading at 1.446 which is .009 of a cent higher. The trading range has been 1.451 to 1.446 so far. I believe this Energy market is sniffing a bottom as well.
On the crude oil front the market was trading tipsy-turvy after the EIA data was much less bearish than the API data and grew some legs and after the FED kept rates in check the rally continued only until their verbiage sold the market off. In the overnight electronic session the March crude oil is currently trading at 3275, which is 45 cents higher. The trading range has 3295 to 3174 so far. I anticipate a test of $33 a barrel which is not much of a bold statement considering where we are trading. However, if that psychological resistance is taken out next challenge is 3350.
On the natural gas front the weekly EIA Gas Storage number is today. I mentioned up above what the prognosticators are thinking of draws in this report. The big news is the second LNG tanker has arrived off the coast near Cheniere Energy Inc.’s Sabine Pass terminal in Louisiana. The liquefied natural gas tanker the Asia Vision is waiting for cargo that has been delayed to February or March due to mechanical problems at the plants 0.65 billion cubic feet per day. This would be the first export from the lower 48 states since 1957. The U.S. has been exporting LNG to Japan from Alaska since 1969 this market should be a boom to the economy. In the overnight electronic session the March contract is currently trading at 2.108 which is .049 cents lower. The trading range has been 2.150 to 2.100 so far.
Have a Great Trading Day!