Good Morning!
Today Janet Yellen should paint a picture to investors on where the FED will stand on future rate hikes. Investors are hoping for a more dovish outlook so we can temporarily drink the punch as a hawkish outlook and taking our medicine all at once could really plunge the global markets.
In the overnight electronic session the March corn is currently trading at 359 ½, which is 1 ½ of a cent lower. The trading range has been 361 ¾ to 359 ½ so far. Yesterday’s report really did not have any major surprises so we will continue to trade off weather here and follow the weather and growing conditions in South America which could not be better. And if we get another rise in exports it may be just what the doctor ordered.
On the Ethanol front there were no trades posted in the overnight electronic session. The March contract settled at 1.402 and is currently showing 1 bid @ 1.401 and 2 offers @ 1.402 at this writing.
On the Crude Oil front last night’s API data showed builds of 2.4 million, which was pretty much in line with expectations. The Price Group forecasted builds of 2 million while the street forecasted builds of 3.2 million barrels. That was enough to have the market swing back after a tumultuous Tuesday. This morning’s EIA data could go a long way as prices seem very weak at these levels. Anadarko Petroleum (N:APC) slashed dividend by 81%, which is just another sign oil companies are being hit hard and Russia and Saudi Arabia are feeling the pinch as well. In the overnight electronic session the March Crude Oil is currently trading at 2845 which is 51 points higher. The trading range has been 2873 to 2817. Another story to grasp is the EIA warns that cheap oil will bring back OPEC dominance of the 1970’s and a reliance on the majority of Energy from a hot spot in the world that could drive prices at a moment’s notice. If that is the case we will just have to build and maintain the shale and other Energy infrastructure and become a hub for imports and exports. U.S. oil companies proved it could be done.
On the Natural Gas front the market is currently trading at 2.061which is .037 cents lower. The trading range has been 2.109 to 2.050 so far. More February like weather and tomorrow’s EIA Gas Storage data could lead to a spike in prices.
Be careful with volatility today as one Janet Yellen sentence could lead to a roller coaster ride.
Have a Great Trading Day!