Good Morning!
This morning we kickoff the day with Existing Home Sales at 9:00 A.M., EIA Energy Stocks at 9:30 A.M. and Dairy Product Sales at 2:00 P.M. On the Corn front news that the private analytics firm Informa Economics trimmed it Soybeans planting forecast to 91.197 million acres, down from 91.387 m/a but still have a potential to be a record high. Informa pegged U.S. 2018 Corn plantings at 89.179 million acres, down from last month’s forecast of 89.675 million acres. The news bolstered activity in the overnight electronic session and the March Corn is currently trading at 353 ¼, which is 2 cents higher. The trading range has been 353 ½ to 349 ¾. If we can start achieving better Exports with a declining U.S. dollar and ahead the next few months we could see some much needed premium built back into the market with the South American good to excellent yields in question
On the Ethanol front news that Valero Energy (NYSE:VLO), America’s largest oil refiner, has left the Renewable Fuels Association (RFA), due to cost-cutting measures, just over a year of becoming the powerful Ethanol lobbying group’s largest member. In the overnight electronic session the February contract is currently trading at 1.331 which is a ½ of a cent higher. The trading range has been 1.337 to 1.331. The Estimated Volume is at 27 contracts and declining Open Interest at 537 contracts. The market is currently showing 1 bid @ 1.331 and 2 offers @ 1.339.
On the Crude Oil front the API had a surprising build in Crude Oil at 4.775 million barrels, Gasoline also was a surprise at 4.117 million, however bullish sentiment with draws in Distillates at 1.280 million and Cushing, Oklahoma at -3.572 barrels. The market initially sold off 30 points but soon realized this number was not as bearish as advertised. In the overnight electronic session the March Crude Oil is currently trading at 6472 which is 25 points higher. The trading range has been 6479 to 6434. The EIA Energy Stocks will be released at 9:30 A.M.
On the Natural Gas front the February had quite the squeeze play as we head into tomorrow’s EIA Gas Storage report. Producers may be locking in these futures prices at these levels. In the overnight electronic session the February contract is currently trading at 3.584 which is 14 cents higher. The trading range has been 3.624 to 3.512.
Have a Great Trading Day!