Good Morning!
Conflicting weather reports finally hit and Baby its Cold Outside. The current Arctic blast will blanket coast to coast and according to the weather module, traders dismissed the original forecast and the fact that the Arctic blast would lift in the coming days does not look like you would want to bank on it today. The market seems to be way overdone with the weather module that caused the break in the first place. The market may get another shot in the arm with tomorrow's EIA Natural Gas Storage and could gain ground after yesterday’s ridiculous selloff.
On the Crude Oil front we have the API Energy Stocks tonight and a story Bloomberg news broke yesterday that Libya plans to ramp up production threatening the OPEC production-cut agreement. The market went into a frenzied selloff when the news broke just like Natural Gas after Crude reached a six-month high. There have been murmurs before from Libya that it would increase production and they never came to fruition. In the overnight electronic session the February Crude Oil is currently trading at 5260, which is 27 points higher. The trading range has been 5296 to 5232. I believe we will trade higher after the Libyan story is negated. I do not believe it wants to pump itself into bankruptcy.
On the Ethanol front there were no trades posted in the overnight electronic session. The February contract had a settlement price of 1.530 and the market is currently showing 2 bids @ 1.510 and 1 offer @ 1.518 with Open Interest holding at 3,847 contracts.
On the Grain front were trading mostly higher in the overnight electronic session with Soybean Oil leading the way, Soybeans are up 3 to 4 cents, Wheat trading is mixed and the March Corn is currently trading at 356 ¾, which is 1 cent higher. The trading range has been 357 to 354 ¾. We should experience a slowdown in transportation and overall movement of product with the cold Arctic blast.
Have a Great Trading Day!