Bank Of England Joins Stimulus Parade
Good Morning!
At 6:00 A.M. MBA Mortgage Applications came out 55.4% versus the previous 15.1% while the MBA 30-Year Rate dropped to 3.47% from 3.57%. We have CPI and Real Earnings at 7:30 A.M., EIA Energy Stocks at 9:30 A.M., 10-Year Note Auction at 12:00 P.M., Monthly Budget Statement at 1:00 P.m. and Dairy Product Sales at 2:00 P.M. Chief economic advisor at Allianz (DE:ALVG) Mohamed El-Erian still believes there will be more and the stimulus will not completely offset the blow to the coronavirus. European Central Bank chief Christine Lagarde stating we need a unified stimulus program with nations or this will be like the banking crisis. A lot of small business’ that are a cog in the wheel to the economy are suffering losses and that will show up in the big picture. On the Corn front the May contract settled 5 ¾ cents higher in yesterdays action. Mostly following suit with higher Energy prices and the stock Market coming back. Also lack of farmer participation in selling at these levels. It is still to early in the game to see if we can have a better year than last year. I hope for the Farmers' sake, it is. In the overnight electronic the May Corn is currently trading at 378, which is 2 cents lower. The trading range has been 380 ½ to 378.
On the Ethanol front there were no trades posted in the overnight electronic session. Ethanol producers worldwide expect demand to pick up on products due to customers stockpiling on hand sanitizer. The April contract settled at 1.244. The market is currently showing 1 bid @ 1.233 and 1 offer @ 1.255 with Open Interest dropping to 300 contracts.
On the Crude Oil front last night's API was not such a surprise in builds in Crude Oil but Products were very supportive. The Crude Oil came out +6.407M, Gasoline stock -3.091M, Distillates -4.679 and Cushing +.364. But the real story here is Russia, Russia, Russia meeting with businesses to soften the blow and how much will the U.S. tariff Saudi Arabia for kicking the U.S. Shale producer to the floor. In the overnight electronic session April Crude Oil is currently trading at 3319, which is 117 points lower. The trading range has been 3635 to 3293.
On the Natural gas front after settling almost 16 cents higher in yesterdays action, actually 0.158 at 1.936 the rally stalled almost forming a textbook double-top on the daily chart. The April contract is currently trading at 1.924 which is 1 cent higher. The trading range has been 1.954 to 1.898.
Have a Great Trading Day!