Good Morning!
The bounce in Crude Oil has brought global stocks out of recession depression blues. Although we our far from being out of the woods, good news is good news and the market is reflecting it. As we start the month on the first day we have reports to follow starting at 9:00 A.M. with Construction Spending & ISM Manufacturing index. At 2:00 P.M. we have Fats & Oils and Grain Crushing. And at 3:30 P.M. we have the weekly API Energy Stocks.
On the Corn front the May Corn is currently trading at 357 ¾, which is ¾ of a cent higher. The trading range has been 358 ¾ to 356 ½ so far. More of the same old song as we head into March and start thinking of the planting cycle as South America harvests their crop.
On the Ethanol front the April contract is currently trading at 1.383, which is .012 cents lower in the overnight electronic session. The trading range has been 1.393 to 1.350. This market is sitting on its hands weighing Corn prices and a possible bottom in Crude Oil and Gasoline prices in which with the current glut the question is “ is this a feasible viable alternative”, or waste of money and ecologically not sound.
On the Crude-Oil front “All systems Go” at the moment. With the continued reduction of U.S. Oil output, Oil companies cutting capital spending and walking away from lucrative projects that they have invested in so much only points to the sign that with the infrastructure down and damaged prices will become more expensive and will roll. The shortsightedness of the government with no energy policy is to blame. Once again they acted too little too late….And that is even if they had a clue what their ineptness has cost taxpayers. In the overnight electronic session the April Crude Oil is currently trading at 3425, which is 50 points higher. The trading range has been 3452 to 3352 so far. The weekly API Energy Stocks could lend a hand to the bulls or give the bears another reason to pounce prematurely.
On the Natural Gas front the market looks sick. The market blew way through my buy zone and I digress to pick another bottom (in the area of 150) but cost of production is going to lead to more capped wells and the eventuality will happen. In the overnight electronic session the April contract is currently trading at 1.702, which is .009 of a cent lower. The trading range has been 1.748 to 1.692.
Have a Great Trading Day!