Temperatures Moderating But For How Long?
As we near Winters Eve, the five-day weather forecast has a little snow and temperatures rising above freezing, which is music to our ears as we say good bye to the Arctic blast and head into Christmas and Hanukah followed by what awaits us in the New Year. Grain exports showed Japan tendered 5 million bushels of Corn while China tendered 7 million bushels of Soybeans. Investors will look at Export Inspections with a keen eye as the Grain complex is taking a Ho-Hum attitude with the strength of the U.S. dollar that may hurt U.S. exports in the future. In the overnight electronic session the March Corn is currently trading at 352 ¼, which is 1 cent lower. The trading range has been 353 ¾ to 352.
On the Ethanol front there were no trades posted in the overnight electronic session. The January contract settled at 1.593 and is currently showing 1 bid @ 1.593 and 1 offer @ 1.607 with little activity or none at all. Overseas demand may encourage more dramatic moves in Corn and Sugar in the New Year, however with the expansion of the EPA regulations and profit margins booming the market may show some strength in the early part of 2017.
On the Crude Oil front we have the weekly API Energy Stocks today and the market is signaling it wants to seek higher highs regardless of the strength in the U.S. dollar. The Stock Market continues to gather legs even with the two terrorist moves in Turkey and Germany yesterday. If the Stock Market stays strong and OPEC and non-OPEC countries comply with their agreement we should take off. In the overnight electronic session the February Crude Oil is currently trading at 5338 which is 32 points higher. The trading range has been 5355 to 5284.
On the Natural Gas front moderating temperatures are keeping passionate bulls from the holiday party. When investors see Thursday’s weekly EIA Gas Storage number and see the draws and fear if another Polar Vortex hits, where will prices go? In the overnight electronic session the January Natural Gas is currently trading at 3.357, which is 3 ½ cents lower. The trading range has been 3,408 to 3.334.
Have a Great Trading Day!