Good Morning!
Stories on the street that China may be selling U.S. Treasuries in bulk to boost its foreign-exchange rate which fell in January to the lowest level bot see since 2012. This could be a negative sign if no country will want to invest in U.S. debt. Historically it has always been a good investment.
On the Corn front the market is trading in a quiet trading range with the March contract currently trading at 366 ½ which is ¾ of a cent lower. The trading range has been 367 ¾ to 366 ½ so far. All new news is pretty quiet and the strength in the U.S. dollar is adding pressure that is not attractive to new buyers.
On the Ethanol front the market had no trades in the overnight electronic session as the market is following events in the Corn and Crude Oil markets. The March contract settled at 1.393 and is currently showing 3 bids @ 1.376 and 1 offer 1.399.
On the Crude Oil front the market is still showing strength with an agreement to cap production by January levels. The next question is will Russia, Saudi Arabia, Qatar and Venezuela stay committed to the plan and cheat on production. In the overnight electronic session the March contract is currently at 3147 which is 81 points higher. The trading range has been 3172 to 3101 so far. Today the EIA number will be released at 10 A.M. central after supportive EIA data.
On the Natural Gas front the market is trading right around our buy-zone. Weather forecasted over the weekend will not be attractive to more buyers. However, next week we are going back to more normal temperature for this time of year and the EIA should see another drop in production and Rig-Counts could show another decline which would be supportive to the market as well. In the overnight electronic session the March contract is currently trading at 1.887 which is 5 ½ cents lower. The trading range has been 1.954 to 1.885 so far.
Have a Great Trading Day!