FOMC Meet Begins Today Decision Tomorrow
Good Morning!
The market has priced in a Fed interest-rate hike. And traders today are in a hurry up and wait mode of what the market will do when the decision becomes reality and they may have to adjust or liquidate their positions,
In the overnight electronic session the March corn is currently trading at 378 ¼, which is ¾ of a cent lower. The trading range has been 379 ½ to 377 ¼ so far. The Grain complex had good gained yesterday as traders realized the market was oversold and last week’s export data showed that regardless of the strength in the U.S. dollar people do want to eat and will participate in our market when the need arises.
On the Ethanol front there were no trades posted in the overnight electronic session. The January contract settled at 1.456 and is currently showing 2 bids @ 1.453 and 4 offers @ 1.469.
On the crude oil front the market rebounded abruptly after breaking through the $35 support level. A fire on a ship in the Houston Shipping Channel disrupted ships meeting their destination to deliver crude to 3 refineries, which in an oversold market lead to yesterday’s spike. In the overnight electronic session the January contract is currently trading at 3611, which is 20 points lower. The trading range has been 3711 to 3603 so far. At 3:30 P.M. we have the weekly API Energy Stocks data that may paint a bearish picture with the disruption in the Houston Shipping Channel not likely to be counted in this report. If it does paint a bearish picture I would look to catch a falling knife and buy with both hands.
On the natural gas front the market is very close of key support and a major buy zone for myself. However the unseasonable warm temperatures are not cooperating with this bias. In the overnight electronic session the January contract is currently trading at 1.847 which is .047 cents lower. The trading range has been 1.905 to 1.833 so far.