🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

I Don't Trust The Natural Gas Rally

Published 03/29/2017, 02:49 PM
Updated 07/09/2023, 06:31 AM
DX
-
CL
-
NG
-
ZC
-
1ZEc1
-

Let Freedom Ring!

Good Morning!

As Taxation without representation is reverberating around the world I pray the U.S. politicians see the error in their ways. And Brexit unfolding and the revolution seems to be gaining further strength from the people. While they get fat and play the George Soros card “I’m from the government so do what I say”, that really help Venezuela George. People have an open mind and will not play into your tactics of your world order and make the world a wild wild west with no law and order despite all your money and jeopardizing thought of Free Markets and not world domination. If you were such a great guy you would be a Liberator not a Conquer. Your failed time has come and gone so just go away.

On the corn front, the market and rest of the grain complex are taking in the fact that we have not even scratched the surface of plantings and it is way too early to say the ground is too hard or soft and weather in the U.S. and South America watching exports, changing of U.S. trade and EPA requirements and the U.S. dollar will be what farmers deem as more profitable to grow in 2017. In the overnight electronic session the May Corn is currently trading at 359 ¼, which is 1 ½ of a cent higher. The trading range has been 360 ¾ to 357.

On the Ethanol front, “All is quiet on the Western Front” with no trades posted in the overnight electronic session. Investments, investors are still considering the change in regulations with processors and producers who will be more profitable or who will be holding the bag with this government mandated requirement as restrictions ease. The April contract settled at 1.560 and is currently showing 1 bid @ 1.565 and 1 offer @ 158 and Open Interest now down to 460 contracts as this month winds down closer to expiration.

On the crude oil front the market and investors are curious to see if the EIA Energy Stocks match last night’s weekly API Energy Stocks, which had a mixed bag of tricks with Crude Oil inventories up 1.91 million barrels while Cushing, Oklahoma showing draws of 576 thousand barrels and Gasoline and Distillates showing draws of 1.1 million and 2.04 million barrels respectively. In the overnight electronic session the May Crude Oil is currently trading at 4860, which is 23 points higher. The trading range has been 4884 to 4839.

On the natural gas front the April contract expires at 12:15 CST while the back month's trades until 4:00 P.M. The rally in the market is leaving producers scratching their heads with product on hand, slower exports and after this light winter, just a complete glut on the market and try moving product in shoulder season at these prices. I do not trust this rally so far until I see tomorrow's EIA Gas Storage but my people are telling me not to expect a surprise. In the overnight electronic session the May contract is currently trading at 3.197 which is 2 cents higher. The trading range has been 3.222 to 3.161.

Have a Great Trading Day!

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.