Good Morning!
The last Fed meeting this rear and investors are pretty close to unanimous that there will be a rate hike on tomorrow’s announcement. The key investors will be listening to is how hawkish and what to expect from the FED in 2017.
On the grain front all December contracts expire tomorrow. The complex is trading a mixed bag of tricks early this morning. In the overnight electronic session the March corn is currently trading at 360, which is ½ of a cent lower. The trading range has been 361 to 359 ¼. Exports are going to play a critical role as investors want to know more of what to expect in the world corn supply next year.
On the ethanol front the January contract posted a trade at 1.745, which is .008 of a cent lower. 2 contracts traded at that price with open interest at 2,812 contracts and the market is currently showing 1 bid @ 1.758 and 1 offer @ 1.774.
On the crude oil front we had quite a trading range in yesterday’s trading session. After a successful OPEC and non-OPEC meeting over the weekend and Saudi Arabia pledging even further production cuts the market responded with fervor. It seems hedge funds led the way taking profits off the table but the market still settled higher. In the overnight electronic session the January crude oil is currently trading at 5331, which is 48 points higher. The trading range has been 5341 to 5247. The International Energy Agency (EIA) had some more bullish comments and we have the weekly American Petroleum Institute (API) weekly Energy Stocks will be released at #:30 P.M. C.S.T.
On the natural gas front the hedge funds were busy Sunday night with a weather report that came out of nowhere and predicted the Polar Vortex will lift after next week prompting a mass exodus. There are still other weather modules that beg to differ from this module, which is why I still remain bullish overall. Technically, the monthly chart looks bullish and if the below zero weather sticks around we have no place to go but up. In the overnight electronic session the January contract is currently trading at 3.517, which is 1 cent higher. The trading range has been 3.540 to 3.462.
Have a Great Trading Day!