Commodities: Trading Markets And Fake News
Dan Flynn | Jan 16, 2018 12:47PM ET
Good Morning!
The Grain report is behind us and the harvest in South America will be in the forefront shortly just as pitchers and catchers will be reporting for duty and we will be talking planting intentions here in the Good Ol’ USA. Has the market priced in bearish news? Does are carryover ever replenish the global demand that growing emerging markets will import and feed their needs. We will see a change in the horizon and people need to eat. This glut will not be forever. In the overnight electronic session the March Corn is currently trading at 348 ¼, which is 2 cents higher. The trading range has been 349 ¼ to 347.
On the Ethanol front the market was active in the overnight electronic session with rollovers moving to the March & April contracts. 36 contracts traded in the February contract and 28 contracts traded in the March. Open Interest is climbing in the March contract at 1,075 contracts and the February Open Interest at 1,272 contracts. The Feb contract is currently showing 1 bid @ 1.364 and 1 offer @ 1.368. We should see some action with Grain plantings and the summer driving season on the horizon.
On the Crude Oil front investors are starting to realize basic fundamentals with OPEC production cuts and emerging markets wanting to grow we will see a super cycle that we have not seen in the last decade. We will have movement of product both in the Grains and Energy and with a strong economy and emerging markets people will embrace higher prices. In the overnight electronic session the February Crude Oil is currently trading at 6409, which is 21 points lower. The trading range has been 6489 to6377.
On the Natural Gas front the weather forecasts and producers moving with the rally to push product and hedge prices to cover cost in this oversold market, which makes any investor want to sell rallies.
In the overnight electronic session the February contract is currently trading at 3.070 which is 13 cents lower. The trading range has been 3.176 to 3.039.
Have a Great Trading Day!
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