Good Morning!
A lot of activity over the weekend. OPEC and non-OPEC countries have come to the meeting of the minds and agree to production cuts. Also, long range weather forecast has changed to more favorable temperatures which pummeled Natural Gas prices. I think the reaction is way overdone as it will be frigid this week. At 10:00 A.M. we will have weekly Export Inspections. News out Friday that India could face tight Wheat supplies as 400,000 tons of Ukrainian cargoes booked for December , are expected to be delayed, just when the South Asian country was boosting stockpiles. The Ukraine is in the middle of peak Corn exports while the Wheat season is nearly over. One New Delhi – based trader was quoted, “Ukrainian exporters are giving more importance to ship Corn and Ships to load Wheat are just waiting”. Contributing to this story is Naveen Thakural of Reuters News. In the overnight electronic session the March Corn is currently trading at 358 ¼, which is 1 ¼ of a cent lower. The trading range has been 359 ¾ to 357 ¼.
On the Ethanol front the market was buoyed by the OPEC news over the weekend. The January contract posted a trade at 1.715 which is 3.2 cents higher. The market is currently showing 1 bid @ 1.696 and 1 offer @ 1.714.
On the Crude Oil front we could be on a pace of $60 a barrel by New Year’s Eve. The encouraging news out of this weekend’s meeting could be just the shot in the arm that these struggling economies need. In the overnight electronic session the January Crude Oil is currently trading at 5385 which is 235 points higher. The trading range has been 5451 to 5255.
On the Natural Gas front a change in the prediction of the long-term polar vortex will hand around had the market gap sharply lower last night. I still believe, “Baby its Cold Outside”, and we will be testing supplies as this wicked cold front will still be around next and we will experience a deep freeze and realize how frigid it is going to be. In the overnight electronic session the January contract is currently trading at 3.576, which is 17 cents lower. The trading range has been 3.600 to 3.535. I still remain bullish, especially at these levels.
Have a Great Trading Day!