Good Morning!
We kickoff the first Monday of March with Markit Manufacturing PMI Final at 8:45 A.m., Construction Spending and ISM manufacturing Index at 9:00 A.M., Export Inspections at 10:00 A.M., 3 & 6-Month Bill Auction at 10:30 A.M., Cotton System, Fats & Oils and Grain Crushings at 2:00 P.M. Volatility is the name of the game and we just seem to keep getting sensational headlines because of the fear of the unknown and not all facts. This should create buying opportunities when things look bleak and oversold, while selling opportunities can be had when the market looks like it will take off like a rocket. We know that there will be demand destruction that has already been priced in and the downward expectations of demand will be temporary and not finite. When factories get back online and people start traveling we will see demand pick up on the backend when things get back to normal. On the Corn front the May contract is currently trading at 370 ¾, which is 2 ½ cents higher. The trading range has been 372 ¼ to 367 ¼. We see the Grains recovering and let’s see if we can get the Stock Market and other commodities get on the bandwagon.
On the Ethanol front the April contract is currently trading at 1.297 which is .026 higher. The trading range has been 1.297 to 1.271. The market is currently showing 2 bids @ 1.273 and 5 offers @ 1.297. 2 trades passed hands and Open Interest is at 358 contracts.
On the Crude Oil front the market is coming back ahead of tomorrows API inventory number. The street is expecting whatever the data shows it will be deemed bullish with the moves OPEC is making to support prices. In the overnight electronic session the April Crude Oil is currently trading at 4585, which is 110 points higher. The trading range has been 4671 to 4332.
On the Natural gas front we had a pop in the market in the overnight electronic session which can be attributed to short-covering profit taking. I do expect some more downside to levels we have not seen in sometime. The April contract is currently trading at 1.729, which is 4 ½ cents higher. The trading range has been 1.762 to 1.680.
Have a Great Trading Day!