Good Morning!
This could be a sign from above as the Fed will not in their right mind raise interest rates to show how bad the current administration is outspending, regulating and just doing a poor job of creating jobs. Therefore, I believe the commodity sector should and will rebound as China’s economic woes will paint a different picture as we close the books on 2015.
In the overnight electronic session the December corn is currently trading at 374, which is 1 cent higher. The trading range has been 375 ¼ to 372 so far. Farmers are very active trying to put this harvest to a close with the warmer weather on the way but they have to beat the rains forecasted this evening so the fields will not be wet. I expect prices to pick up and exports to improve if we can keep the U.S. dollar from rallying.
On the Ethanol front the November contract posted a trade at 1.506 in the overnight electronic session which is .019 of a cent lower. Currently the market is showing 1 bid @ 1.511 and 2 offers @ 1.534.
On the crude oil front today the November contract expires so we will focus on the December contract. In the overnight electronic session the December is currently trading at 4633, which is 5 points higher at this writing. The trading range has been 4669 to 4614 so far. I expect an upswing in prices going into year-end and we may have an eye opener with the weekly API Energy Stocks data to be released at 3:30 P.M. Surprise has been the story of the last two reports. So buckle up.
On the natural gas front the November contract is currently trading at 2.475 which is .033 cents higher in the overnight electronic session. The trading range has been 2.692 to 2.654 so far. The market may be vulnerable to a weather related long liquidation here in shoulder season...