Monsanto (NYSE:MON) Expects Prolong Delays on GMO Permits in Mexico
David Alire Garcia of Reuters reported that a ban of genetically modified corn is likely to continue for years to hash out the legal challenges over the effect it will have on the environment that is threatened to take years with environmentalist going to battle. Meanwhile the weather is turning in Argentina with excessive rains are easing and crops are stabilizing. In the overnight electronic session the March Corn is currently trading at 358 ¼ which is ½ of a cent higher. The trading range has been 359 ½ to 358.
On the ethanol front there were no trades posted in the overnight electronic session. The March contract settled at 1.503 and is currently showing 6 bids at 1.493 and 1 offer at 1.522 with Open Interest at 3,247 contracts.
On the crude oil front we are hoping for a turnaround Tuesday as the market sold off on light comment and a story broke that U.S. Production is going to offset OPEC Production Cuts. Whoever let that story out is dreaming. Today we also have the weekly API Energy Stocks at 3:30 P.M. In the overnight electronic session the March Crude Oil is currently trading at 5255 which is 8 tics lower. The trading range has been 5270 to 5224. Although we can’t ignore light volume we are pretty close to a major bottom.
On the natural gas front the same old song of a warmer than average January with less than average snowfall. Forecasters are still predicting a brutally cold February and March but investors are not buying into it. In the overnight electronic session the March contract is currently trading at 3.157 which is 7 ½ cents lower. The trading range has been 3.235 to 3.142. If the weather changes to cold, a bullish injection number on Thursday EIA Gas Storage and a bullish Baker Hughes rig-counts on Friday. These three things that could change market psychology and we could be off to the races.