Market Rally!Good Morning!
Light volume and oversold grain prices are leading to a spike in volume and prices. In the overnight electronic session the March corn is currently trading at 368 ¼, which is 2 ¾ cents higher. The trading range has been 368 ¾ to 366 ¼ so far. The market should see some value seekers as rains in South America that will slow harvest and sales of product in Brazil and Argentina should see some value seekers coming to buy U.S. Grains at these levels.
On the Ethanol front the April contract is currently trading at 1.429 which is .009 of a cent higher. The trading range has been 1.429 to 1.428. This market will continue to follow Grain prices and Energy prices as the government will mandate how much Ethanol should be pushed to the consumer as we talk of an oil glut and refineries are gearing up for the summer driving season.
On the Crude Oil front the market has really fond some legs continuing to rally off of the spike in prices after the agreement of exporting counties to put a freeze on production and seemed to be further solified with verbal commitments from other exporting OPEC nations. We must remember the Latin moddo “Facta non Verba”, which simply means “Deeds not Words”. In the overnight electronic session the April Crude Oil is currently trading at 3350 which is 175 points higher. The trading range has been 3363 to 3161 so far. Today is Last Trading Day in March Crude Oil roll or liquidate before the 1:30 P.M close.
On the Natural Gas Front the market seems to be seeking a bottom, which I hate to pick or call. However with cost of production and rig–counts dwindling it is only evident that prices should rise. In the Overnight electronic session the March Natural Gas is currently trading at 1.809 which is a half of a cent higher. The trading range has been 1.828 to 1.767 so far
Have a Great Trading Day!