Slow Markets on Spring Equinox Day
The Grain market started higher yesterday but could not sustain the rally only to sell off and go lower on the day. Plantings in southern states have started but weather will be crucial to see if farmers can get ahead of the game without disruption before the March 31st USDA Planting Intentions report. In the overnight electronic session the May Corn is currently trading at 362 ¼ which is 1 ¼ of a cent lower. The trading range has been 363 ½ to 362.
On the Ethanol front there were no trades posted in the overnight electronic session. The April contract settled at 1.529 and is currently showing 3 bids at 1.521 and 6 offers at 1.531 and declining Open Interest at 1,553 contracts in shoulder season.
On the Crude Oil front the April contract expires today. In yesterday’s action it just seems any bearish headline gives bullish investors the jitters. Yes we know we have oil reserves that we did not know existed 10 years ago and shale producers boosted rig counts for the 9th straight week and Libya has resumed shipping after disruptions with civil tensions. Libya is still a hot spot on the map and I do not take much stock that shipping will not be disrupted and count those barrels of oil on the market. Which is only more bullish news. I do expect prices to rise with today’s weekly API Energy Stocks and anticipate further draws to show up. In the overnight electronic session the May Crude Oil is currently at 4913 which is 22 points higher the trading range has been 4948 to 4887.
On the Natural Gas front it is the same old story. Demand is down and prices are getting cheaper. We will need a hot summer to rekindle the bullish passion with investors. In the overnight electronic session we have a pop in the market. The April contract is currently trading at 3.081 which is 4 cents higher. The trading range has been 3.099 to 3.060.