Good Morning!
Italy voted 'No' and delivered another blow to the future of the E.U. And the rescue plan for Italian bank Monti dei Paschi di Sienna was rated the weakest lender in the European stress test this summer. The world’s oldest bank needs to raise 46 billion Euros of bad loans by the end of the month or it could be curtains and history if a rescue plan is not salvaged. Chicago Federal Reserve President Charles Evans is scheduled to speak today and investors are presuming him to have hawkish comments ahead of next week FOMC meeting.
On the grain front we are trading higher in the overnight electronic session. The March corn is currently trading at 348, which is ¾ of a cent higher. The trading range has been 349 ½ to 347. We could see a pick-up in Exports today. This morning we will have ISM non-Manufacturing Index at 9:00 A.M., Export Inspections at 10:00 A.M. and Dairy products at 2:00 P.M.
On the ethanol front we are rolling over to the January contract. No trades were posted in the overnight electronic session. The contract settlement price was 1.574 and is currently showing 2 bids @ 1.556 and 5 offers @ 1.580. Expect to see price spikes in this commodity in the coming days.
On the crude oil front the market continues to rally. OPEC will meet with non-OPEC countries to secure an agreement on production cuts. In the overnight electronic session the January contract is currently trading at 5218, which is 50 points higher. The trading range has been 5242 to 5104.
On the natural gas front, Old Man Winter cast his wicked potion and when he struck it was one for the record books. O’Hare International Airport reported as of 6:00 P.M. last night of 6.1 inches of snowfall, which was Chicago’s first measurable total on record. And the bulls in the natural gas market were dancing to their tune. In the overnight electronic session the January contract is currently trading at 3.561, which is 12 ½ cents higher. The trading range has been 3.576 to 3.450.
Have a Great Trading Day!