On the Hurricane Front the National Hurricane Center upgraded Zeta to Hurricane status as Hurricane Warnings have gone out from Morgan City, Louisiana, and the Mississippi/Alabama Wednesday night due to Zeta’s fast forward speed. The storm is moving north with maximum sustained winds at 80 knots and winds at 15 knots.
On the corn front we trade we traded lower in yesterday’s action with the December corn closing at 416 which was down 1 ¾ of a cent. There were not many new sales announced and traders will be looking at tomorrows Export Sales data, the last one before the election. The resurgence of the COVID-19 in some states and in Europe have spooked the market before Halloween.
Corn harvest is 72% done and the weather is not making it easier as we come to the close of the harvest season. The Chinese government will issue a lot more import tariffs so they can buy more U.S. corn. And China may hit the $23 billion goal in ag purchases in Phase 1 of the trade agreement with soybeans above $10. Also,” exports where loads go out in the Gulf and Pacific Northwest are booked to capacity through January. As new orders come in Duluth and other Great Lake ports are being pushed to the max,” according to Al Kluis with Kluis Advisors. In the overnight electronic session, the momentum is carting the market lower as other outside markets with the COVID scare. The December corn is currently trading at 497 ½ which is 8 ½ cents lower. The trading range has been 415 ¼ to 496 ½.
On the ethanol front the Pacific Ethanol surprise to change its name and transform the business farther away from gasoline additives caught investors off guard but the main reason the stock was down 8.8% was the company’s decision to release a large secondary stock offering. There were no trades posted in the overnight electronic session. The November ethanol settled at 1.550 and is currently showing 1 bid at 1.416 and 0 offers with Open Interest at 36 contracts.
On the crude oil front last night’s API showed builds in crude oil stocks at +4.577M, Cushing +0.136M, gasoline +2.252M and distillates down -5.333M. As we now know Zeta graduated to hurricane status and traders will be positioning as to risk on risk off, damage control, disruptions and so on. The Covid fears are also a factor playing in today’s market price swings. In the overnight electronic session, the December crude oil is currently trading at 3773 which is which is 184 points lower. The trading range has been 3901 to 3762.
On the natural gas front today is last trading day for the November contract. The market is as well trading risk on-risk off with hurricane. In the overnight electronic session, the December natural gas is currently trading at 3.301 which is .010 lower. The trading range has been 3.316 to 3.265.