Good Morning!
David Alexander with Reuters reported that President Trump asked China to lift all tariffs on U.S. Agriculture products (including beef, pork, etc). Meanwhile he did not further impose 25% in more tariffs on Chinese goods Friday as initially planned. The discussions are moving along positive lines and there is a ray of sunlight with expectations that President Donald Trump and President Xi Jinping could reach a formal deal at a summit around March 27th. There are hurdles that still remain but we seemed to be navigating the waters that if the deal was struck at the right time it would benefit both sides. Expect China to further stimulate their economy and should create a Stock Market rally with all precious commodities moving forward as well. The news changed the psychology since Friday’s fears of a slowing global economy. The 30 to 60 day forecast is favoring above normal rainfall which would slow plantings not to mention when we thaw sooner or later there will be plenty of already saturated ground and possible floods along the Mississippi with melting snows. In the overnight electronic session, the May Corn is currently trading at 376 ½, which is 3 ½ cents higher. The trading range has been 377 ¼ to 373 ½. We have Export Inspections at 10:00 A.M.
On the Ethanol front this market bought into the positive news as well with the April contract currently trading at 1.356, which is .009 higher. The trading range has been 1.356 to 1.350. 13 contracts traded and Open Interest has climbed to 1,031 contracts. The market is currently showing 2 bids @ 1.353 and 1 offer @ 1.346.
On the Crude Oil front the market is throwing out Friday’s pessimism with a slowing economy fears in the drivers seat. Investors still fail to grasp we had bad weather and a government shutdown and a strong GDP number on Thursday. Fundamental news with shortages in Shale, OPEC production at a 4-year low and growing geo-political fears not to mention the technicals are backing the bullish fundamental news and we will have demand outpace what we can produce globally very shortly. In the overnight electronic session the May Crude Oil is currently trading at 5707 which is 88 cents higher. The trading range has been 5713 to 5615.
On the Natural Gas front the market is not overly bullish with all the snow and cold as the Arctic temperatures impact the Plains and Mid-West with Spring approaching but not spring-time weather. In the overnight electronic session the April Natural Gas is currently trading at 2.854 which is a ½ of a cent lower. The trading range has been 2.888 to 2.821.
Have a Great Trading Day!