MBA Mortgage Applications came in at 30.2% with the previous 13.5% and MBA 30-Year Mortgage Rate came in at 3.87% versus the previous 3.91%, New York Empire State Manufacturing Index and PPI at 7:30 A.M., EIA Energy Stocks at 9:30 A.M., Fed Harker Speech at 10:00 A.M., NOPA Crush at 11:00 A.M., Fed Beige Book at 1:00 P.M. and Dairy Product Sales at 2:00 P.M. On the Corn front the market could not punch through resistance and settled a ½ of a cent lower. Elevators and farmers were selling Corn as better weather prospects in South American weather for crops and concerns of the wildcard of how much U.S. Corn China is committed to purchasing. And South America could pose major competition. In the trading at 389 which is unchanged The trading range has been 389 ½ to 388 ¼.

On the Ethanol front Germany-based CropEnergies reported a 12% increase in revenues despite a drop in Ethanol volumes. Production of dried food and animal feed products decreased accordingly, while production utilization was adjusted to suit market conditions and to carry out regular maintenance activities. Revenues rose to 668 million euros versus last year 596 million euros the previous year. In the overnight electronic session there were no trades posted in the February contract while the March contract posted a trade at 1.369 which is .006 lower. The market is currently showing 1 bid @ 1.367 and 2 offers @ 1.383 with 1 contract traded and Open Interest at 258 contracts.

On the Crude Oil front the market is showing resilience after a bearish API number last night. OPEC did say they are planning to extend production cuts at the March meeting in Vienna, They will extend to the next meeting in June. Which is more bullish fundamental news. In the overnight electronic session the February Crude Oil is currently trading at 5823 which is unchanged. The trading range has been 5836 to 5784.

On the Natural Gas front with cold weather coming the market can not hold on to any rally. Weather reports have the lifting of the polar vortex and moving to the other side of the globe. I still have an uneasy feeling after last years weather of what’s in store for us in the future. In the overnight electronic session the February Natural Gas is currently trading at 2.127 which is 6 cents lower. The trading range has been 2.189 to 2.124.

Have a Great Trading Day!
Dan Flynn