Good Mornings!
We have a slew of reports this last day of March starting off at 7:30 A.M. with Export Sales and Initial Jobless Claims. Followed by Chicago PMI at 9:00 A.M. and EIA Gas Storage at 9:30 A.M. and at 11:00 A.M. the eagerly awaited Grain Stocks & Prospective Plantings.
In the overnight electronic session the May Corn is currently trading at 366 ½, which is ½ of a cent lower. The trading range has been 367 ¼ to 366 ¼ so far. Depending on what source you listen to about farmers planting acreage I anticipate them to plant more which could lead to wild swings so you may want to take a limited exposure position before the report buying both calls and puts to take advantage of the swings.
On the Ethanol front there were no trades posted in the overnight electronic session and this market is waiting to see Corn acreage as well. The April contract settled at 1.455 and is currently showing 1 bid @ 1.437 and 3 offers @ 1.472.
On the Crude Oil front the May contract is currently trading at 3840, which is up 8 tics in the overnight electronic session. The trading range showed price swings from 3859 to 3757. We could see a test of $40 a barrel in today or tomorrow’s trading session barring any further dismal economic or geo-political news.
On the Natural Gas front we have the weekly EIA Gas Storage where the Thomson Reuters poll of 24 experts estimate draws anywhere from 16 bcf to 33 bcf and 22 bcf being the benchmark. Tomorrow we have rig counts and we will need some weather to add support to this oversupplied and oversold market. I do see certain traders trying to take advantage of this weather phenomenon of La Nina by trying to buy value in the back summer months. In the overnight electronic session the May contract is currently trading at 2.005 which is .009 of a cent lower. The trading range has been 2.010 to 1.985.
Have a Great Trading Day!