Good Morning!
As what was harvested in the past years even with an agreement to reduce oil supplies to get the market back in balance, the question is, “who will enforce these cuts?” The answer is clear and the 13-member OPEC nations were quoted that they alone will not be able to clear the current landscape without the cooperation and contribution of non-OPEC nations to revive their struggling economies. Last night’s weekly API data showed surprising builds of 4.7 million barrels, which pushed the market back and put the brakes on the Bull Run for the moment. In the overnight electronic session the January Crude Oil is currently trading at 5216, which is 82 points lower. The trading range has been 5255 to 5207. Today’s FED announcement may add some shakes and bakes to this market as producer and consumers surmise the headlines.
On the Natural Gas front it all depends on what weather forecast you believe in. Right now it is below average cold and winter in Chicago I do not bet on prognosticators to tell me we will see warmth before February. If this Arctic cold spell lifts we will still be wearing jackets in the merry month of May and if those warmer predictions are wrong, “Katy Bar the Door”! In the overnight electronic session the January Natural Gas is currently trading at 3.479, which is a ½ of a cent higher. The trading range has been 3.484 to 3.444. With this election outcome whether it was jubilation or depression the market is trading on another anomaly.
On the Ethanol front there were no trades posted in the overnight electronic session. The January contract settled at 1.743 and is currently showing 1 bid @ 1.728 and 1 offer @ 1.739.
On the Corn front the market continues to trade weather and global demand. Exports going into next year and currency fluctuations are impacting importing countries of what crop is more attractive to purchase. At these prices it is not attractive to U.S. Farmers. In the overnight electronic session the March Corn is currently trading at 359 ¼, which is 1 ¾ of a cent lower. The trading range has been 361 ½ to 359 ¼.
Stay warm and buckle up.